Are financial problems causing you to think about taking out a loan? If so, then your first inclination will probably be to go to your bank. But bank loans can be hard to get unless you have excellent credit. One good option is to go to a money services center when you need to borrow money. Here is a closer look at three types of loans these businesses generally offer.
A signature loan gets its name from the fact that you don't have to put up any collateral to obtain the loan. You merely have to sign the loan papers in which you agree to repay the loan at an agreed-upon interest rate. Of course, the money services lender will need to verify that you have enough income to repay the loan. You also usually need to have an active checking account and proper identification. Proof of address may be required as well.
As a rule, these loans will carry higher interest rates than loans backed by collateral.
Another type of loan these companies offer is known as a title loan. You put up the title of something you own, typically an automobile, as collateral for the loan. When the loan is repaid in full, the lien on your title is lifted. A key point is that you get to drive the vehicle while you're repaying the loan. Generally, you will need to show a government-issued identification card or document and present a vehicle title that is clear of any liens and is in your name.
The requirements could vary from state to state, however, so check with money services for eligibility requirements.
In addition to vehicle title loans, some companies may offer loans to boat owners. As with vehicle loans, the loan is backed by the title to the boat, and you retain the boat itself while the loan is being repaid.
If you are a homeowner, there is a third possibility available to you. Some money services will let you borrow against the equity in your home. For example, if you have a home whose market value is $150,000 and owe $100,000 on the mortgage, your equity is $50,000. You will, therefore, be able to get a loan based on your $50,00 in equity.
To learn more about these loans and whether you qualify for one of them, talk with a professional at a money services lender in your area.