Where to Find the Right Loan for You

Nov 30, 2017 by

There are myriad reasons to take out a loan. But not all loans are equal, and going about getting a loan isn’t a one-size-fits-all kind of thing. If you’re looking to finance something expensive in your life, be sure you know where to start looking. A lot of this will depend on your income, location, and the specific needs of your project. With any kind of loan, you’ll want to make sure you have a good credit score; this will help you get better loans with lower interest rates. And remember, it’s important to make all your loan payments on time as well, so as not to accrue extra interest and fees and to keep your credit score strong.

Home loan/mortgage

Your home loan is one of the biggest investments you will ever make, and choosing the right loan or mortgage for you is essential. Start with a reverse mortgage calculator, which will tell you the amount you can afford to take out. You can get mortgages through your bank, a mortgage lender, or a mortgage broker, but it all depends on your personal situation. You may even qualify for a mortgage through the Federal Housing Administration. Banks usually have fewer options, although they can also be more flexible for you.

Loan for a car

If you’re looking for a car, you have several loan options available to you. You might first check with your bank, especially if you have good credit. If you’re a member of a Federal Credit Union, take a look there. Since most FCUs are non-profit organizations, they offer lower-interest loans–to members only. You may also consider an online lender, which can be convenient, although you’ll need to be ready to get bombarded with emails, since the lender may give out your information. For car loans, you can also get a loan from the automaker itself. Lots of them have their own finance companies. You can sometimes get these kinds of loans through your dealership, although dealerships have a tendency to have big markups, so be ready to do some negotiating.

Student Loan

With the rising cost of college tuition, most students end up taking out some kind of loan. As a general rule of thumb, students should avoid private loans, since these have higher interest rates. Students should see what loans are offered or subsidized through the US government at studentloans.gov. After the student submits his or her information, the service will present students several loan options. Depending on family income, students may also qualify for non-loan aid, such as Pell Grants, which don’t have to be repaid.

Business Loan

If you’re looking to start a business, you should consider the usual: banks, FCUs, and private lenders. For-profit lenders, however, don’t tend to give loans to people without strong credit and financial history. If this is your situation, you might take a look at lending through the Small Business Administration, which is a federal body that partners with certain banks and FCUs. A private lender may be the way for you to go, however, depending on your situation. A specialized business lending company can offer you all sorts of specific loan types. They’ll also offer you a free analysis of your financing needs, so you can get an idea as to where you need to start, and some even offer equipment leasing and loans for churches.

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