There is a wealth of opportunities to find funding today but each funding is specific to particular needs. Whether you are looking to buy a home, finance your education or to buy your wedding dress, you will need funding. Depending on the nature of your needs, we will turn you towards a certain type of financing. We will see here a number of loans available to you and what kind of situations you could use them.
Do You want to buy a condo?
The mortgage is usually used to purchase a property that it is a condo, a house or apartment. You can choose your loan rate and fixed payments to floating rates and fixed payments or to rate and variable payments. These loans are offered by financial institutions and repayable over several years. Imagine that the market interest rates are stable or falling, here you choose a variable interest rate, you will pay less in fact that if your rate was fixed. Conversely, in the case where they are on the rise, it is preferable to take a fixed rate.
You can also use the credit margin on net value of the property which allows to use the equity in the house for the purpose of borrowing. However it will then serve as collateral in case of default. Its main advantage is lower interest rates, it is necessary however to show discipline and not end up using this line of credit as consumer loan which will only accumulate your debt.
Do You need money to make major renovations?
Usually a minimum of $ 5000, the line of credit or personal loan is requested for those wishing to address urgent purchases goods or unexpected expenses (renovation of your roof). It is recommended for people able to manage personal credit and having good tolerance to fluctuations in interest rates, the latter being variables. Depending on the offer of your institution and your needs, refunds can be done on a daily, weekly or monthly. Its main disadvantage is the full use of this opportunity without back from behind to repay.
To be eligible for such a loan, several factors are generally considered: your income should generally be between $ 35,000 and $ 50,000, your current level of debt and your credit score.
As we have seen above it is also possible that your credit line (see margin on the net value of property) is secured by property belonging to you to ensure that you will be able to repay.
Do You need money immediately?
Cash advances are a kind of loan in cash on your credit. You withdraw money from an ATM with your credit card?
This is a substantive advance and fresh self-automatically. Interest rates are generally much higher than for loans previously seen and are applicable from the withdrawal of funds to the date of interest repayments. This can affect your credit rating if you do not make payments and you may have trouble to qualify by following a loan application. Here we recommend using cash advances for emergencies, lack of liquidity and repay as quickly as possible. Indeed daily fees add up to time that the advance is repaid.
Do You need money but you have a poor credit rating?
The micro-loan is a short term loan that can help when you have a need for one-time money. It is not usually offered by a financial institution but a brokerage firm. It allows you to borrow money even if you have a bad credit rating. You will need to prove to the lender that you have a stable income since you must generally pay the loan on the next payday.
Micro Loan bids range from $ 250 to $ 1500 with a short repayment period. The consideration for this type of loan is that the interest rates are generally very high. Its main advantage is the speed of production and access to the profiles more “delicate” financially.
Are You overwhelmed with debt?
The consolidation loan is usually made by a financial institution that can repay your creditors into one payment with a generally lower rate than required by your creditors. This is a possible option in case your credit rating is considered acceptable, a debt ratio below 40% and you have a steady income. The downside is that sometimes the institution may be stiffer than your creditors and will not accept in any way a late payment, so make sure that this is the choice that suits you best. Of course we advise you to avoid making any additional loan application if you are already in consolidation procedure. And you see now, which loan suits you best?
