Personal loan, vehicle refinancing and property refinancing: Which is the best among the different types of loan?
Applying for a loan is much more than simply borrowing money from the bank or finance. There are different types of loan. Are you going to buy a car? Finance a property? Pay off debts? Shopping? For each of these reasons, there is a type of loan that works best. Before you choose, how about meeting some?
Are your bills tight? Comes from personal loan
This is the most common type of loan as it does not require any collateral. If you have tightened your bills or want to make a big purchase, it is worth going for this category. When applying for the personal loan, you choose the ideal amount and number of installments.
The personal loan is simple and usually quite quick to be released. Once you ask for the amount you want, your request goes through a review by the financial institution. Since she needs to be assured that you will pay what you have requested. In case of approval, you get the money into account in a matter of hours.
Disadvantages of Personal Loan
The disadvantage of these types of loans revolves around interest. Compared to all other lines of credit, personal loans have the highest interest rates in the market. They revolve around 5% per month, which means that each installment will have an increase of 5% of the loan amount. If you have chosen to extend the payment over many months, you need to be very careful not to get into new debt! In this case, trying to settle the installments as soon as possible is a good solution.
An unexpected happened but has a car in the garage? Vehicle Refinancing Now!
Unforeseen happen mainly in the world of finance. Sometimes you get much bigger debt than you expected and you have no way: You need to take more drastic measures, such as cutting back on spending and getting a loan. If you have a car in your name, a vehicle refinancing can be a solution!
Basically, you will place your car as collateral to be able to apply for a loan. The cool thing about this option is that you still use your car normally, and still get a credit of up to 70% of the value of the car!
This category is widely used and accepted more easily by financial institutions than an unsecured loan, as they are more certain that the debt will be repaid. If you choose to do a refinance, the first step is to make all documents, both his as the car, up to date. Oh, and the vehicle needs to be in your name, otherwise it’s not a guarantee, huh.
Run after your car valuation to find out what the market value is. Thus, you can get a preview of how much you can request, as some banks may request this survey if your request is larger than $ 15,000. Also be aware of the “ age” of your car – it is very difficult for institutions to accept cars over 10 years old.
Lower interest rates!
The biggest advantage of refinancing your vehicle is the interest rate. This line of credit has one of the lowest interest rates on the market and is therefore a great solution for you to save. The downside is that you need to be extremely organized with your payments: after 3 months without paying the installments, your car can be auctioned off by the bank to pay off your debt. Can you imagine the headache? Therefore, be aware of the payment dates and amounts.
With big orders come big responsibilities: know the refinancing of property
Similar to the mortgage, except that in the case of refinancing, the property stays in the name of the bank during the time you will be paying the installments, to prevent the applicant from selling the property or making another transaction that could disrupt the property. monthly payment.
But don’t worry, you can use it normally!
You have decided that it is time to change your life: buying an apartment, starting a new business, paying off huge debts that you have long been in. To do this, it is time to apply for a fat loan from the bank, but how?
Home refinancing is what was missing for your business to take off for good. When it comes to very high values, financial institutions are afraid to give up the loan. To facilitate this approval, refinancing your property is a great alternative. It can be your home, apartment, business, land, whatever – what matters is being in your name . After evaluating your documents, the bank can offer you up to 60% of the value of your property on loan!
As this alternative gives you high numbers, the repayment term is also longer, and can reach up to 20 years with interest rate starting at 1.09% per month. It is a viable option for those who need loans and have a good value. minimum of $ 30 thousand. It is very similar to the mortgage, except that in the case of refinancing, the property stays in the name of the bank during the time you will be paying the installments, to prevent the applicant from selling the property or making another transaction that may disrupt the monthly payment. But don’t worry, you can use it normally!