Loan Options for $1,000 or More
For people who are looking to take out a loan in excess of $1,000 for personal use, there are a few ways to accomplish this. Some of the lending choices can be quite costly, while others can be more reasonable.
There are a few lending opportunities that should be considered first. The best loans are often given by credit unions. Part of this is because they can often provide loans that a bank may reject. This is especially true if the person has a longer standing banking relationship with a customer.
The next loan type that is advisable to obtain is a personal bank loan. These can either be based on collateral or not and can at times require a co-signer. While the interest rates may vary from lender to lender, banks and credit unions usually offer the lowest personal loan interest rates. Another personal loan options include taking a loan against equity in real estate or against something of value such as jewelry, bonds, whole life insurance, or even stocks.
Other options for gaining access to a personal loan are through payday loans, credit card cash advances, and automobile title loans. The problem with any of these types of loans is that they often carry high interest rates and penalties and can be cost prohibitive. However, there are occasions when this type of loan may be necessary, but these loans should be considered short term and should be paid off as quickly as possible to avoid an even greater debt problem.
As far as processing is concerned the quickest loan types are usually the loans that have the highest interest rates. In fact, some Payday loans and Automobile Title loans and Cash Advances can be obtained in a matter of minutes which for some people can make them feel better that their loan is processed and approved. By contrast, credit union loans and bank loans and equity loans against real estate usually take a few days to process and may require many more verifications before approval is forthcoming but allow for a longer payoff time and have interest rates that are more reasonable.
If regular loans are not an option and time is of the essence than a cash advance against a credit card would be the next best alternative. That is because Payday Loans and Automotive Title Loans both tend to carry higher interest rates which can make paying them back more difficult and higher penalties for late payments than a typical loan.
An Automotive Title loan is a loan against equity in a motor vehicle and the vehicle becomes the collateral. A Payday Loan is a loan that is based on a person’s employment and paycheck.