Types of Alternative Loans Available
There are a number of different types of loans available from a multitude of different lenders. The most common loans are those used to purchase a home, a mortgage, car loans, and to pay for student tuition. Individuals can visit a bank or credit union to take out a mortgage, a loan to buy a car, a student loan, or even a personal loan. These are the more typical types of loans that most people are familiar with. With recent changes in the banking industry, these types of loans are also more difficult to obtain. There are several alternatives, though.
Payday Loans
One alternative loan is the payday loan, also known as a cash advance. Individuals can visit payday lenders, fill out an application, and receive their money usually within an hour. Borrowers must have a job and will need to bring proof of identity, residency, and income. The borrower writes a check for the loan amount, usually a few hundred dollars, plus loan fees. The loan term is normally very short, just a few weeks, and if the borrower does not repay the lender will cash the check.
Pawnbroker Loans
Those looking for an alternative to borrowing from a bank can also visit a pawnbroker. If an individual possesses some items that are valuable, he or she can take them to a pawn shop and get a loan using the items as collateral. If the borrower does not repay the loan, the pawnbroker can sell the items and recover any losses.
Car Title Loans
Companies like Embassy Loans of Florida, one of the state’s largest consumer finance firms, have helped thousands of people with car title loans. Individuals who own a vehicle that is paid for and has a clear title can use that vehicle as collateral for a loan. Those who meet the qualifications can apply either in person or online. Applicants will have to prove their identity and residency as well as produce the title to the vehicle. Title loan companies like Embassy Loans will appraise the vehicle and write up the final loan agreement. The entire process is usually completed within an hour and many borrowers receive their money the same day they fill out their application.
Loans From Friends Or Family
A loan from a family member or a friend is also an alternative to borrowing from a financial institution. Doing business with family or friends can be difficult though. What if the relative or friend is offended by being asked for a loan? What if the borrower fails to repay? These types of things must be considered as they can damage a family or a friendship.
