Loans

Alternatives to Traditional Loans

Alternatives to Traditional Loans

A traditional loan is when someone goes to a bank or other lender and borrows money with an interest rate that can be variable or fixed. Payments are made for a period determined by the amount being borrowed. Generally, to qualify for this type of loan, you must have good credit. What if you need money and a traditional loan is out of reach?

Options

One type of loan you may want to consider is an installment loan. The amount you can borrow varies, but it is repaid in a specific amount of time by making monthly payments of the same amount. This can be helpful, because you will know how much you have to pay each month. To be eligible for this type of loan you must be of legal age, have proof of residency and income, and generally you must have property that is worth as much as the amount you will repay. Speedee Cash is an example of a company that offers installment loans mississippi.

If your credit score is a concern, you may want to consider options, such as payday loans or title loans. These types do not use your credit score. However, there are some requirements. If you apply for a payday loan, you will have to show proof of a steady income, an active checking account, and proof of your social security number. Title loans require inspection of the vehicle and the title. There may be other requirements depending on where you live.

Asking a Relative

Of course, when you are in need of cash in a hurry, you can always ask a relative or friend. However, many people do not want to do so. They might feel as if they are admitting that they really can’t make it on their own. The person might say no. Maybe they do not want them to know why they need the money.

Emergencies do occur, whether it is a bill that was forgotten or an unexpected medical issue. Since there are several options, finding one that fits your needs is much easier today than in the past.