Different types of credit and why a payday loan may be the right choice in 2018

It has become increasingly common for people in the USA to be searching for credit. All types of people attempt to get credit and for a variety of reasons. Some people make the mistake of getting the wrong type of credit and this can lead to larger repayments over a not so ideal period of time. So what types of credit are there and which one is for you?

– A secured loan
A secured $2000-3000 loan is a loan secured against a valuable asset e.g a house in order to gain a reduced rate of interest. These are used for larger sums of money and are repaid over long periods of time, usually 5 year or more. These are relatively easy to get for homeowners with a good credit rating however no one is guaranteed approval.

– A credit card with a high limit
A credit card with a high limit is tempting for most people with financial difficulties. If you have a good credit rating you could qualify for ones of these however if not used correctly it could see your credit rating take a big hit. People who enjoy spending have been known to max out large balances in minutes with online shopping now easier then ever.

– A credit card for people with a low credit rating
These credit cards are easy to get approved for and you can see yourself having extra cash available within a week or two. The problem with these is the high interest rates charged, sometimes 85%! Also, the minimum payments are so low that you can easily find yourself searching for your second one within a few months as you have got all the use out of the first one and have no way of paying it back.

– A payday loan
A payday loan’s main use is a quick solution to waiting until payday, a helping hand to your short term cash flow problem in the form of a bank transfer of the amount you need. If used properly, a pay day loan can act as a vital lifeline when you are in need or even as a friend you can rely to have cash when you need it. If you need a relatively low amount of cash quickly, then a payday loan is for you or repaid installment loans. I deal around Summer Holidays as it allows you to get those presents in even if your pay date falls just after Holidays.

references:
https://www.extloans.com/
https://creditcards.usnews.com/
https://www.thesimpledollar.com/best-payday-loan-alternative/

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