5 Types of Loans You’ll Likely Need at Some Point

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At different stages of your life, borrowing money for a purchase or to achieve a goal is a sound solution. Many people aren’t aware of how many loan types are on the market today. Which ones are you most likely to need at one time or another? Here are five examples of loans that you may need one or more times in over the years.


Auto Loans


Few people are in a position to pay cash for a new vehicle. Even if the plan is to purchase a previously-owned car or truck, the most likely approach is to supply a down payment and finance the remainder of the cost. The auto loan balance is paid using a series of monthly, biweekly, or weekly installment payments, with monthly being the most common approach.


Shopping around for the best auto loan terms is always a good idea. This is especially true if your credit is not the best at the time you need to buy a vehicle. There are lenders willing to work with just about anyone, provided they have a verifiable source of monthly income. Sites like Smarter Loans can help connect loan seekers with lenders who offer reasonable terms and can process applications quickly.


Mortgage Loans


Nothing beats the thrill of purchasing a residential property. Having a home of your own means not having to deal with noisy neighbours on the other side of an apartment wall. It also means being able to make any changes to your living space that you want without having to consult a landlord.


If you’ve reached a point in your life where there’s money for a down payment, your credit is relatively good, and you can afford a mortgage payment, it’s time to find a property and seek financing. Consider receiving pre-approval for a mortgage up to a certain amount. Doing so allows you to move quickly if you come across the ideal house and want to submit an offer before someone else snaps up the property.


Payday Loans


There will some short-term emergency that requires an immediate infusion of cash. When that emergency develops in between paydays, seeking out a lender who will loan the money for a short period of time can work to your advantage. Many payday loans allow anywhere from a couple of weeks to a month to repay the amount borrowed plus the applicable interest.


The nice thing about this approach is that once you successfully repay one loan, the lender if often willing to work with you again. See it as a good way to get cash quickly if the need arises.


Healthcare Loans


Even with excellent heath insurance, it’s possible to incur medical bills. Perhaps you need a procedure that is not covered in full, or you want to try an alternative medical treatment that is not covered at all. Maybe you need dental work, but your health insurance does not cover anything other dental car associated with an accident. What you need is a healthcare loan.


Sometimes known as a medical loan, this solution allows you to cover the remaining costs of the procedure and settle the loan balance using a series of payments. Think of it as a way to safeguard your health by having essential treatments now and dealing with the cost later. Comparing options for healthcare loans through partners like Smarter Loans makes it easier to find lenders offering the most competitive terms.


Personal Loans


The nice thing about a personal loan is that the money can be used for just about any event that you want. Use the money to pay off several debts, leaving you with one debt to manage. Borrow money to finance a vacation and then pay it off with a series of monthly payments. For maximum flexibility, this simple loan option is hard to beat.


Now is the time to learn more about different kinds of loans and how they can be put to good use. When and as a need arises, there will be no question of what kind of loan you need and where to look for the right lender.


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