The other types of payday loans in the market include mortgage loans, home equity lines of credit, car loans, installment loans, home improvement loans, consolidation loans, payday loans and credit cards. Then, there is the personal loan where you may apply for a one-time loan of a certain amount for which you will need to repay in monthly installments. There are also personal loans for bad credit history; if you have a lot of debt under your belt.
Personal loans may be a better choice compared with the other types of loans available as it may be easier to be approved and takes a shorter time to be approved. It may involve fewer documentation and less paperwork. Of course, you may also get this type of loan to build up your credit history or to improve your credit rating by consolidating your debts. The interest rate for this loan may be lower than credit card rates so it may even help you to save some money. If you need money in a hurry, you may apply for this kind of loan as it does not involve complicated application and approval process. In fact, approvals could be received within a few hours or in two to three days’ time for payday loans.
To top it all, you may not need to borrow against your home equity or other assets as there are also unsecured personal loans. If you are unsure of how much you need, you may not want to apply for payday loans. Instead you can try applying for a personal line of credit or open ended loan. A closed end loan means you only want to borrow a sum of money once and after that, pay up through monthly installments. Meanwhile, if you are starting a business or doing home improvement works where you may need to borrow money a few times over a period of time, then a personal line of credit or open ended loan may be what you would like to consider.
There are many reasons why you may wish to consider taking up personal loans instead of secured loans like a second mortgage. If the sum you need is not very high, you may apply for this loan. This is also probably better than using your credit cards especially if you have a debt problem and you want to consolidate your debts. These types of loans are often referred to as an overdraft facility because of the payday loans acquiring procedure that requires the pledging of an asset or commodity as collateral. This is definitely the solution to short term cash problems without much of an altercation or delay.