What are your best loan options?

Teri Ann Renee Paisley, Gleaner Online Writer

Anybody who knows me, knows that I hate borrowing money. I would rather do without whatever it is that I want to buy or save for it over a period of time than be in someone’s debt.

I suppose that way of thinking was passed down from my mother who insisted that if we did not have the money for something then we should consider it out of our reach. I can still hear her saying,’Don’t hang your hat too high.”

The truth is though, that although it would be great to have enough cash to pay for all our expenses, often you have to consider all your options so that you can fill in the gaps in your budget.

There are also cases that were not planned that require more funds that you have, such as severe illness or accidents. These unforeseen situations usually force many people, including me, to consider borrowing money even if they are not normally in debt.

Where can you get a loan?
Persons first think of taking out loans from a bank.
This option is suitable if the sum of money you need to borrow is large and you have a good credit history with the bank.

Banks offer a number of loan options and customers can choose the length as well as the type of repayment including salary deductions.

The disadvantage with bank loans is that you may have to pay a hefty processing fee and endure a lengthy qualifying process. They also have high interest rates which means that they will have costly payback options on the loan.

There are also credit unions to consider for loans as they offer their members reduced interest rates. The flexibility of credit union loans also offers consumers a shortened waiting period. If the loan amount is under $100,000, some credit unions offer same day approval.

Payday advance companies also offer loan services. They promise same day approval in some cases. Most payday companies have a limit of $500,000 while credit unions will lend up to 80% of the shares held by the member.

Regardless of which option you choose, loans are not to be taken without an in depth examination of your finances as you must have the ability to repay them.

What’s your best option of getting a loan? Let me hear from you.

Tags: Credit Union, Loan