Edited to add: SQUEEEE!!! I’m Blog of the Day at PayPerPost! That is AWESOME, thank you!!! I feel like *sniff* Miss America *sniff*.
I used to work in the loan department of a credit union. My first position was as the file clerk, so I spent a lot of time looking at loan documents. It was my job to make sure that when someone applied for any kind of loan, the appropriate documents were on file. If you’ve never borrowed money, here are some tips to get you started.
There are two basic types of loans. The first type is the Secured Loan. When you borrow money to buy a car, boat, RV, or house, the object itself is the collateral on the loan, meaning that if you don’t repay the loan, the lender can take back the collateral. A used car loan is a typical first loan for people just starting out on their own, and it’s fairly easy to get as long as you have a secure income.
The second type of loan is the Unsecured Loan, also known as a personal loan. People apply for personal loans for all kinds of reasons, including to pay for vacations or Christmas presents, to purchase furniture or to finance home improvements. The interest rates on personal loans can be quite a bit higher than on secured loans, so you want to shop around and make sure you know the terms of the loan.
I don’t think there’s anything wrong with taking out loans as long as the monthly payment is truly affordable. Sit down and make a list of all of your monthly expenses, and then add in the amount of the monthly loan payment. Do you still have money left over for food and gas and a little savings just in case? It’s important to live within your means, and I know that saving money can be hard when everything is so expensive these days. But you don’t want to lose your property because you couldn’t really afford the monthly payments, either.
Another thing to think about is building your credit history. As ironic as it might seem, NOT borrowing money does not give you better credit than if you DO borrow money. Creditors want to see that you are able to make your payments on time. A small secured or unsecured loan that you pay off on time, in full, can be a good way to get your credit history started. And nothing feels better than making that last payment and getting your loan documents back stamped “Paid in Full”!
Nice post…simple and very easy to follow
Hello from another postie!! I sure would love to build my credit back up to where I could even think about taking out a loan! Ugh! Our credit sucks right now!!
I read your 100 things! But – can we be BFF’s instead of BBF’s – because I don’t know what those are!
Congrats on being blog of the day at PPP!
Twitter: admutum
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Congrats. BTW, what happened to your blog title and links on the top. They are invisible unless you put the cursor on top.
good job
Mathews last blog post..High Risk Personal Loans: A Different Approach
Payday Loans are not as bad as those who have misused them want others to believe. Many family and personal emergencies have been alleviated with this short term financial fix.
I have personally used cash advances many times and they have saved my butt on many occasions and I am thankful for them.
As a matter of fact, I had to get several cash advances in a row to pay for the expenses of my new baby and it was well worth it.
Thanks for sharing this great post. It is informative and helpful. I have been searching for a site that could provide me comparison of all available home loan lenders to save my time and efforts. you’ve really helped out. Thanks