Are you in the market for a personal loan? Unsecured loans such as personal and payday loans provide consumers with the opportunity to establish a credit facility for purchases that are immediately beyond their reach. There are numerous options for consumer credit available to you.
How do you go about selecting the right facility? Here are a few opportunities for loan companies that offer consumer credit facilities.
A Brief List of Loan Companies
Consumer credit comes in the form of unsecured and personal loan and credit cards facilities, as well as other credit vehicles such as credit cards and mortgage loans. Here is a brief breakdown of what you can expect from each loan facility.
1. Signature Loan Companies
This credit facility is the most common type of small personal loan. The bank or lending institution will agree to loan you a small amount of money, without the need for collateral to secure the loan. This model means that if you default on the loan, the bank can’t seize your assets for repayment.
However, it’s important to note that these loans are not risk-free. If you fail to meet the terms of the loan repayment, the bank or lending authority can blacklist you with credit authorities, spoiling your chances of receiving further credit facilities in the future.
2. Credit Card Companies
If you need money in a hurry, visit your local bank branch and apply for a credit card facility. Credit cards are available from traditional financial institutions, such as banks, as well as credit card companies. The chances are that you’ve received plenty of emails offering you a credit card. Dig through your inbox and apply for one today.
Credit card companies and banks will offer an interest-free repayment window that’s typical during the first 55 to 60-days after using the card. During this time, you have the option to repay the loan, without incurring any interest charges.
This facility makes credit cards ideal for anyone looking to bridge their monthly finances. However, when the interest moratorium ends, you can expect to be charged up to 25% interest on any outstanding amount.
3. Payday and Personal Loans
If you’re looking for a small loan to finance a vacation or remodeling your kitchen or go on vacation, consider a personal or payday loan. These loans come with affordable interest rates and flexible terms. Payday facilities typically require settlement with your next paycheck. Short-term personal loans can come with a credit facility of anything between a few months to a few years.
Also Read: How to Fix Your Credit Score
Wrapping Up – Sourcing a Loan with a Bad Credit History
Always make sure you intend to repay any loan you receive for the bank or lending authority. Failure to repay the loan will result in blacklisting by all other credit facilities, and you may find it challenging to obtain any other form of credit in the future.
Your credit record also affects your insurance premiums as well. If you have bad credit, it will cost you more to ensure your home and your car, and prospective employers may turn down job application if they see you have a poor credit score.