Almost every day, you are involved in some type of financial transaction requiring an educated decision. And we all need extra cash from time to time. Maybe you need extra funds to purchase your "dream" home, or a more reliable vehicle. Perhaps you want to provide that "fairy book" wedding for your only daughter, or take that once-in-a lifetime paradise vacation. Sometimes it is simply not practical to make a purchase by saving up
cash, and that's where a loan can help. Nearly everyone needs to borrow at some time in their life--to finance a house, buy a new automobile or send kids to college. But with so many different types of loans from so many different financial institutions, how do you decide which is best for you?
When you set out to borrow money you are barraged with jargon of banking industry. Revolving loans, points, adjustable rates, bridge loans, beacon scores, amortization and on and on and on. It is important to understand these terms in order to get your best possible deal at lowest interest rates that are currently available. Take some time, research terminology and become a smart money shopper.
Not many years ago, banks were only "boys on block" when it came time to obtain a loan. You got dressed in your finest outfit, got a haircut, and shined your shoes in advance of your meeting with bank manager. Today, loan providers are everywhere. Supermarkets, credit unions, television ads, daily credit card offers in mail, finance companies, and payday loan building on corner. Where do you start? Obviously first question--how much money do I need?--must be answered. If you are shopping for a home, for example, you will not be using a credit card. Here is where your neighborhood bank can help. And even Uncle Sam--if you get a Veteran's Administration (VA) or a Federal Housing Administration (FHA) loan.
Other types of loans available include: car loans, business loans, debt consolidation loans, home improvement loans, home equity loans, refinance loans, personal loans, payday loans, and bridging loans (used to "bridge" a short-term financial gap when cash is needed for a special project). There are nearly as many loan types available as there are reasons to borrow money. Approval for loans is based upon a number of factors, such as age, employment, income, and credit rating.
