For a large part of America’s population, times are tough and taking out the occasional loan is a must. Without a steady job or a great credit history, they may end up looking at alternative lending solutions.
Payday loans are the most expensive short-term loans available. Offered on practically every street corner in poorer neighborhoods, and even online, getting a payday loan is fast and easy.
Say you need money to buy a new fridge because yours has broken down and your children need to eat. In a perfect world, you could go to an appliance store and purchase a new fridge with cash or store credit. People who don’t have that option though will find a payday loan to be the best option.
A $500 loan will cost around $600 after a month of interest has accrued. This is an expensive alternative.
For the lucky Americans with home equity, an emergency is a little bit less scary. Instead of visiting a bank for a second mortgage or HELOC, try a private lender. The interest rates will be higher than at a traditional bank but money can be had quickly and easily – oftentimes even without a home appraisal.
Private lenders also allow you to borrow smaller sums of money and to repay the money over a shorter period of time. While a bank wants to lend a lot of money over a great number of years, private lenders will give you a second mortgage for a couple of thousand dollars and a 3-year repayment schedule – perfect for someone looking to borrow money to buy a new car or replace the roof.
Car Title Loans
For people who own cars, there’s a third alternative lending option available. Car title loan companies are places where you can get money and still keep driving your car. There are quite a few options. For example, car title loans Fort Lauderdale is a company that knows what the competition is offering and promises the most cash at the best rates and it’s been around for over a decade.
Car title loans end up being cheaper than most private mortgages and practically all payday loans. In the end, there are options for those with bad credit.