One of the most frequent questions we receive is “What are the different loan types I can choose from?” In this article, we will attempt to delineate the various loan types and also offer useful tips on which loan type you should be choosing and why.
As the name suggests, auto loans (within the category of different loan types) are generally a preferred choice when you are purchasing a new car or refinancing an existing car loan. At NationalLoans.com, we have special car loan programs that you can take advantage of. Flexible repayment terms and insanely low interest rates make auto loans an ideal opportunity for those desirous of purchasing their next vehicle.
Short Term Personal Loans
Short term personal loans are the most popular category within the umbrella of different loan types. The loans are repaid within a short period of time and have flexible terms as far as the usage is concerned. Individuals are free to use short term personal loans for any of their purchase or emergency needs. The duration of repayment is short and generally edges around the next pay date.
Debt Consolidation Loans
No description about different loan types would be complete without touching upon debt consolidation loans. As the name suggests, these loans are made available for the express purpose of consolidating multiple debts into one simple offering.
No rocket science here. Home loans are very popular category within the branch of different loan types. Home loans can be offered for equity purposes as well and are classified as equity loans. Home loans also include refinance loans as these are used for the purpose of lowering interest rates on an existing financial arrangement. Of courses, home mortgage loan is a part of the same family.
Cash Advance and Payday Loans
Although the terms are similar to different loan types, this category of loans requires repayment within the period of the next paycheck. Essentially, a short term loan that has the duration and tenure up to the next pay check.
Normally, if you want to apply for a federal loan, there will be an application involved. Most of the time, your credit will be considered, but it will not hold the weight that a private lender’s loan would have. You will have to provide information on what you will be doing with the money, and prove that you meet the rules for the specific loan.
Student aid does exist, and there are many lenders who specialize in loans that are tailored just for students or those who wish to further their education.
Here are some tips you may want to consider when applying for different loan types:
- Compare and shop – Always compare multiple lenders. The more lenders you compare the higher your chances of saving money. At NationalLoans.com, we make the comparison shopping process a breeze. Try it!
- Negotiate – Don’t hesitate to negotiate. Irrespective of the type of loan network you select, don’t hesitate to negotiate. What’s the worse they can say? No, right? But if your negotiation strategy falls in place, you could end up saving a bunch every month.
- Reboot your credit – Your credit score receives a very important layer of consideration during the application process so irrespective of the loan type you opt for, try to fix your credit to the best extent possible. You could shave off several percentage points if your credit is noteworthy.
- Planning – Carefully plan the different loan types you will be choosing from. Reassess your personal and financial situation to choose the loan type that you really need. Remember, interest rates differ between the different loan types so spend substantial time researching both your needs and your options.