It can be difficult when considering loan options to know what type of lender is going to best fit your needs. It seems like the options are endless. Different types of lenders offer different types of loans and also have different advantages and disadvantages. Below are some of the most common places people go to request a loan, and how to tell if each might be the right option for you.
Banks
Banks are businesses owned often by shareholders and are for-profit organizations looking to maximize profits. They usually offer the largest number of products and services compared to other types of lenders. Banks provide people with mortgages, personal loans, business loans, and a variety of account options and investment options. A lot of the time, the loans that banks offer are more long-term in nature.
Credit Unions
Credit unions are very similar to banks. They offer a lot of the same types of services and loan options. Many times credit unions are smaller than banks, and can’t provide the same number of products and services, so if the loan amount you are looking for is too large, a credit union may not be the best option for you. The main difference between banks and credit unions is that credit unions are owned by members rather than shareholders. This means the people using the services are the ones that own the credit union.
Friends/Family
When money is tight, sometimes people will turn to friends or family for cash. The upside to using friends or family for loans is that they normally wouldn’t charge interest for the loan, meaning you only owe them the money you borrow. There is not often a cost associated with this. However, this option puts unnecessary financial burden on your loved ones. Many times this is a last resort for people, as they don’t want to put the hardship on those close to them.
Payday Lenders
Payday lenders are short-term loan lenders that are meant to get you through to your next payday. When unexpected expenses come up–like car troubles, medical bills, or home damages–payday loans might be the right option to get you through to your next paycheck. These loans are meant to be used to get people through hardships. The typical loan should just be a week or two long, and the loan amount is very small.
Make sure to evaluate your options when considering the lender you are going to use. If the nature of the loan you need is immediate and for a relatively small amount, a payday loan from Short Term Loans could be right for you. If you believe this is the case, the good news is that applying is fast and easy, and in most cases we can get the money you need into your account the very next day after you get approved. Apply now!
