It can get very though out there in the modern world and sometimes the amount of money that we earn is just not going to be enough in order for us to be able to invest in new business ventures or even be able to afford that new vehicle that we have been trying to purchase because the one you have now is old and costing you too much in repairs.
If you are going through this problem, you have two options to choose from.
You can either ask for a loan from a local bank or you can get it from a licensed money lender.
The Bank Loan
Banks are getting harder to ask loans from these days. They will do a very close check on your current credit, on your payments and delays and they will make sure that you meet the minimum required income in order to lend you money.
You can consider this option viable only if your credit is relatively healthy and you have not maxed out a large number of cards that you are planning to pay for with other loans. The most important thing to always keep in mind is that banks are no longer trying to lend you money unless they are absolutely sure that you will pay them back in time.
The Licensed Money Lender
This is the option that most people are now looking for because it’s quite flexible in comparison to the banks. A good example is with a minimum annual income of $20,000. When you are making less than that per year, there is virtually no chance that a bank is going to be approving your loan. Money lenders will probably grant you around $3,000 even if you are not meeting that minimum requirement stated by banks.
On the other hand, if you earn more than $20k per year, you could get about 3 to 4 months’ worth of salary from a licensed money lender and that will depend on how much they trust you for paying them back. Showing up with any kind of investment that ties you up to your current location I going to be very useful for them to verify that you are not simply going to leave and not pay what you owe.
How long does it take?
A low interest personal loan from a bank can take weeks to be approved, while a loan from a private licensed lender could easily be ready within 48 hour and sometimes even faster. The biggest issue with the private money lender is that you might be facing some heavy interest rates that will mean you get to pay way too much money for the loan you are given.
This is something that might not sound like a big deal when you are short on cash and you just need that loan approved, but it’s better for you to simply take the time to find the best possible rates for your loan.
There are plenty of options to choose from when it comes to both banks and private lenders, but the options will narrow depending on your income and your credit history. The best way to ensure that you will be able to get the best possible payday loan or personal loan and the lowest rates, is to be patient and consider all the available options before you make a decision. You might regret rushing into the first deal you see only to find out that you could have made much more if you had waited a bit longer to decide.