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.