If you’ve fallen on hard financial times, you’re not alone. During these times, it’s wise to consider obtaining a loan. Considering that, you’ll want to know there are a wide variety of ways to achieve this goal. You don’t necessarily have to visit your bank in order to borrow funds. With that in mind, here are three main types of loans to consider obtaining.
- Signature Loans
Many people needing emergency funds try to obtain signature loans. Statistics show that 31% of personal loans are for vehicle expenses, 26% are for paying bills, and 21% are for personal emergencies. Otherwise known as a good faith loan, these loans require a borrower’s signature and not much else. By signing a signature loan document, you’re agreeing to pay back what you owe within a certain amount of time. You’ll also need to pay back whichever interest rate you receive, a figure that’s based upon your credit standing. Personal loan amounts typically range from $50 to $200,000. However, the average amount of a personal loan is $7,576.
- Auto Title Loans
It’s understandable to wonder about the differences between title and vehicle registration loans. If you own your vehicle which means not owning any money towards it, you’ll want to consider a title loan. It’s also important to ensure that your vehicle has no liens. If you meet these requirements, it’s likely that you’ll be able to obtain a title loan. Statistics show that the average auto title loan amount is $1,000. Your vehicle’s Kelley Blue Book value determines the amount of your auto title loan. The Kelley Blue Book provides an accurate value of a vehicle based on its age and other important factors.
- Vehicle Registration Loans
Not everyone currently owns the vehicle they’re driving. If you’re currently making payments on your vehicle, you might qualify for a vehicle registration loan. However, you’ll still need to ensure that the vehicle is registered in your name. Vehicle registration loans are also beneficial for those with less than stellar credit. Since this type of funding is for those who don’t own their vehicles, interest rates are typically higher than title loans.
To summarize, it’s important to learn that there are several ways to obtain a loan. You don’t have to rely on your credit history to receive emergency funds. If you own or are making payments on an automobile, you can qualify for either title or registration loans. These loans allow drivers to obtain fast funding for emergency purposes.