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Best Loan Companies Near Me

Best Loan Companies Near Me and How to Get A Loan

All About Loan Companies

There are a lot of reasons why people might need loans. This could be to get a new suspension for your car that suddenly broke down, or for taking care of the funeral of your old grandfather that just passed on and so on. There are a lot of reasons why people might need loans. Although, the tricky part is getting the loan. People can take a loan from their friends, relatives, banks, commercial lenders and so on. People that don’t have friends or relatives they can borrow from have to rely on banks or commercial banks. While it’s easy to get a loan, you have to be careful not to get yourself into taking a bad loan, which would leave you financially worse than you were, before taking the loan. This is the purpose of this article, to highlight tips to put in mind when considering taking a loan.

Where Can I Get A Loan?

Banks: Whenever you think loan, think bank. Your local bank is the best option for you if you’re considering a loan of a significant amount. The main reason why bank loans might be the best option is that of their low-interest rate. In addition to having low-interest rates, they also offer favorable repayment terms, especially for clients that have a good credit score. The bank knows the financial state of the borrower, and would only give a loan they’re sure the client would be able to return.

How Soon Can I Get A Loan?

It usually takes a short period for banks to process a loan application. This is the only downside to taking loans from banks; you’d have to wait for a considerable amount of time before you’d be given. This might not be the best option that needs the money urgently, and immediately. Also, banks usually don’t provide loans to clients that have a poor credit score. Such clients are referred to as not creditworthy. In cases where the loan is eventually approved, they’d be asked to provide a co-signer or submit collateral in case they default on the agreement with the bank.

Finance Companies

Local Finance Companies

Local finance companies also give loans. However, they charge higher rates as compared to banks. Also, local finance companies are not as strict in considering the credit score of a client. Although, the waiting time for both local finance companies and banks are the same. They are not the best option for individuals that need the money urgently

Pawn shops

Although this might not be popular, both pawn shops are the best option for those that need money urgently and do not have a good credit score. However, they should be the last resort, if you’re in desperate need for cash. Pawn shops do not request for collateral or a co-signer, neither do they care about your credit score.

WhatYou need to get a loan

All you need to have to get a loan from a pawn shop is a material you’re willing to drop, in exchange for money. This could be a gold watch, a telephone, and so on. Whatever you’re ready to drop has to be valuable, as they only lend out 25% of the value of the material you deposit with them. They usually give borrowers between a month to two months to return the money, or they’d forfeit the valuable they dropped for good. So you must ensure that you’d be able to return the borrowed money, pawning your valuable.

Payday loan Stores

Payday loan stores are ideal for individuals that need money urgently and do have poor credit scores. They are usually one of the links that pop up when you search for ‘‘loan companies near me’’. The things you’d have to provide are the proof that you have a job, some post-dated checks, and you’d be granted the loan you want. However, you’d have to repay the money in just a few weeks. This might worsen the situation for a lot of people, especially those that don’t have limited resources.

Loan Repayment

The repayments are planned in such a way that it coincides with the next paycheck of the borrower. People who get paid every week would have to pay the money back in one week. On the other hand, people that get paid every month would have to pay the money back in one month, when they get paid at work. In cases where the borrower defaults, the money would be rolled over to the next month, and the amount they borrowed will start growing until they are neck-deep in debt.

Friends and Relatives

These are the usually the most comfortable people to borrow money from. This is because you get the money almost as soon as you ask for it, and you wouldn’t have to pay any interest on the loan unless they request for it. In addition, they’re no severe consequences in case you default. However, it’s strongly advised not to break the trust of your family or friends, when it comes to money. You might ruin the chances of borrowing money ever again if you fail to pay back the money they borrow you on time. The best way to borrow money from friends and relatives is to put it into writing and add a little interest to it, so everyone benefits

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People are allowed to borrow money from their retirement plans. Although, there is a limit on how much you can borrow. The limit is usually around $50,000 or less. However, this is the best way of getting cash without delay. The reason why it’s a good idea taking out money from your retirement plan is that the money is yours, and when you pay back, you do this with interest, which is also your money. This should be an option if you have poor credit scores and can’t secure a loan from banks. The only downside to this is that taking money from your retirement plan would stop the compound growth you have on it, and this might set you back a couple of years on your retirement goal.

References (2019). Retrieved from https://www.creditloan.com/personal-loans/ LendingTree - 1-800-675-5153. (2019). Retrieved from https://www.lendingtree.com/ Müller, E., & Reize, F. (2010). Loan Availability and Investment – Can Innovative Companies Better Cope with Loan Denials?. SSRN Electronic Journal. doi: 10.2139/ssrn.1605209