The internet has allowed us to get instant loans with just a few clicks of the mouse. Whether we need an emergency personal loan, a payday loan or a low-interest personal loan, there are so many options out there.
Here are a few you might consider:
The Payday Loan
Payday loans have become something of an internet sensation in the past decade or so. You can’t turn on a radio or TV without seeing one advertised. These kind of loans are the ones we should be most careful of. They generally will loan to just about anybody, regardless of their credit status. This leaves the creditor charging very high interest rates to cover his risk.
Make sure you are able to pay back your payday loan within the next month before you sign up for one. Budget properly and have a clear idea of whether or not you will be able to clear the debt and not fall short the following month. These loans should be kept for emergency situations only.
The Personal Loan
Different to a payday loan, personal loans are offered by most financial institutions. They take into account your credit report and lend money on terms that are agreeable between both parties. Generally used to acquire larger sums of money like a car deposit or rent deposit, the loans can be as high as R150,000.
There are several options when looking to get a personal loan:
- The conventional method of going to the bank and demonstrating why you need the money
- The online method of applying via one of the many online financial lenders
- The social method of approaching one of the peer-to-peer lending sites around and getting funded by individuals who see you as a way to grow their money while helping someone else out
Whichever way you acquire your loan, always do your research first. Check out the financial lender you have approached, know all the terms and conditions of your loan, and ensure you are able to afford the repayments without leaving yourself in danger of defaulting.