More and more people
are finding themselves needing to find a small temporary loan or some other
type of helping hand just to make it through each day. One of these helping
hands is an Unsecured Line of Credit.
Now there are many
types of unsecured credit available. Credit cards, Installment loans, short
term loans, Revolving credit plans, and also cash advances. Credit cards can
help, but not everyone has a credit card or has the qualifying credit score to
get on board with a credit card company. In addition, cash advance fees are
high and if you miss a payment, your rates can go up and you will incur
additional charges. An installment loan is an unsecured credit loan payable
over a set period of time as well as a set number of payments to pay back.
Short term loans come in the form of Payday Loans and Payday Advances, which a
payday loan company will loan you an amount of money based on your income that
you should be able to pay back within 2-4 weeks. Revolving lines of credit are
a type of loan where a company gives you a credit limit and you can take some
or all of the money out and then pay interest and fees until you pay the loan
principal back, with no set time to pay the loan back. As you can see there are
many types of unsecured loans to provide you the financial assistance needed to
get through a tough time.
So who would need
these types of unsecured loans? A research survey was conducted in 2012 and
found that over 12 million people in the US have used payday loans, that
calculates out to roughly 4.5% of the people living in the US. It appears that
75% of people taking out payday loans were at a storefront and 25% borrowed
from an online provider. The majority of payday loan borrowers were white,
female, and between the ages of 25 to 44. Obviously most of the survey was
looking at various surface level indicators of loan activity based on gender
and race, but the survey did show that 8% of renters making 40k-100k as well as
6% of homeowners making 15k to 40k were a part of the majority of loan recipients.
Cash advance loans are
of great importance and to some people can be the only last hope to get by in a
real time of need. You can use the money for anything from real life
emergencies, changes in the amount of your paychecks, or other various issues
like car problems, medical issues, bad financial decisions, and a slew of other
issues as well. Sadly enough, banks and commercial loan agencies are not
interested or unable to provide you these much needed loans for small dollar
amounts. So when people are faced with real life situations, where money is
needed, short term cash advance companies provide these customers with an
option. When applying for loans, the best route to take is that which clearly
defines the difference between rates of one lender to the next. When loan
agreements are blindly entered into, massive amounts of daunting debt can
accumulate before the borrowers fully understands what is happening and why.
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