Getting a loan is something almost everyone comes across the possibility at some point in their lives. After all, they can help you with some of the biggest purchases you’ll ever have to make, especially if you don’t have the current savings to go through with the buy right now. At the same time, you’ll have to go through your options to see where you can find the best rates, lowest interest fees, and most flexible repayment plans. These are the top choices out there.
Student Loans for Your Child
A college education for your child means better job opportunities and a higher salary. At the same time, college costs can add up tremendously, between tuition, room and board, and hefty textbook fees. Instead of having your child bear the burden of borrowing money at such a young age, you can consider taking out a low-rate Private Parent Loan and borrowing for them. After all, you’ll have a longer credit history, leading to better borrower rates and more flexible repayment options compared to typical governmental student options.
Credit Builder Loans
Speaking of credit, if you happen to suffer from a low score, you’ll know that it can negatively affect your ability to borrow money for cars or homes. Luckily, credit builder loans can help you build up your credit to a great score, so you have better options down the road. Instead of getting any money upfront, the credit or other financial institution holds onto the money, and you make small, monthly payments to the lender. Once you’ve paid the total amount of the money borrowed, you receive the cash. You get a better score and cash at the end — it’s a win-win.
Of course, auto loans remain one of the most popular options for everyone. They enable you to get a car that you repay over a period of a few years. You can borrow money from many different sources, including car dealerships or your own bank. Borrowing money for a car and making payments on time can also help build your credit.
Home Equity Loans
If you have equity in your home, you are in luck. You can use that equity to take out a home equity loan, also known as a second mortgage. You get a lump sum of cash that you’ll then pay back over 5 to 30 years. This is a great option if you are in need of a large amount of money now like if you are considering remodeling your kitchen or for an emergency. However, you should proceed with caution. As your home is listed as collateral, it can be collected by the lender if you don’t make your payments.
Personal loans are the broadest option, with the ability to help you with a large number of big purchases. You can borrow money for an emergency, medical treatment, or debt consolidation. Alternatively, you can also look at leisurely options, such as borrowing money for a dream vacation. The better news? Buyers with good credit can receive excellent interest rates.