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Bypass The Bank And Save In The Process |
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In modern society, we are only used to one way of getting a loan and that is walking into a bank and applying for one. But have you considered other ways you could borrow money without a bank? Some will cost you less than a bank loan, some are the alternative for when a bank just won’t lend to you. |
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| Author: Jesse Roberts |
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This is the oldest method of borrowing, before there were financial institutions, if you needed to borrow money you simply approached a friend or the richest person you knew, if they trusted you they would borrow you the money, if they didn’t trust you or know you well enough they’d ask to hold onto something, otherwise known as collateral.
This method isn’t quite dead, although most people, mainly out of pride, are afraid to try it. If what you need is a small loan, there’s no reason not to try your friends or family, for their peace of mind, have them hold onto a valuable item of yours. The advantage of this method is that the person will rarely ask for interest on the loan.
Online Lending clubs
A more modern way to bypass the bank is by borrowing from an online lending club, sites like Prosper.com have thrived in the last few years, what they do is connect people who wish to borrow with individuals with spare cash they can lend out.
With this method you will have to pay interest, although it is likely to be lower than what you might pay the on a bank loan.
The downside to this method is that they usually only accept people with good credit ratings, if you have a bad credit rating, you have little chance of getting a loan from these clubs.
Payday loans
A payday loan is a short-term loan that you pay back in one lump sum, this option is ideal for those who need the money immediately and can pay it back within a month. A bad credit rating isn’t an issue since these types of loans do not require a credit check.
About Author
Jesse Roberts is a writer in the finance area, her work includes tips on how to get a poor credit loan, guides on secured loans along with many others.
Article Source:
http://www.1888articles.com
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