Borrowing money is something you may need to do in the near future, if you have not already done so. When it comes to the time that you do need to borrow money, it will most likely to be in the form of a loan. There are many types of loans and each one is better for different people with different situations. How much you want to borrow, how much equity you have and how long you want to borrow the money for are the key aspects when it comes to deciding the method you choose.
If you want to borrow anything from 1,000 to 25,000 then you are best suited with a personal loan, also known as an unsecured loan. Personal loans do not need to have any collateral against them such as your home or other valuable possessions hence the name 'unsecured loan'. Interest rates are usually high for personal loans as there is no collateral provided.
For anything over 25,000 you will need to obtain a secured loan, this is where you borrow a set amount of money and use your house as collateral, failing to make the repayments will result in your home being repossessed. The interest will be lower with this type of loan as you are providing your home as collateral.
Anything under 1,000 you should consider taking out a payday loan, this is where you take out a set amount and you pay it back within one month, usually when you get paid. Interest rates for payday loans are normally set at 25% so you should always consider other types of borrowing.
So to recap, if you need under 1,000 look at payday loans, anything from 1,000 - 25,000 then you will need an unsecured loan and anything over 25,000 you are best taking out a secured loan. - 18193
If you want to borrow anything from 1,000 to 25,000 then you are best suited with a personal loan, also known as an unsecured loan. Personal loans do not need to have any collateral against them such as your home or other valuable possessions hence the name 'unsecured loan'. Interest rates are usually high for personal loans as there is no collateral provided.
For anything over 25,000 you will need to obtain a secured loan, this is where you borrow a set amount of money and use your house as collateral, failing to make the repayments will result in your home being repossessed. The interest will be lower with this type of loan as you are providing your home as collateral.
Anything under 1,000 you should consider taking out a payday loan, this is where you take out a set amount and you pay it back within one month, usually when you get paid. Interest rates for payday loans are normally set at 25% so you should always consider other types of borrowing.
So to recap, if you need under 1,000 look at payday loans, anything from 1,000 - 25,000 then you will need an unsecured loan and anything over 25,000 you are best taking out a secured loan. - 18193
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