Types of loans: What options are available?
Many types of loans are available, however they depend on your expectations and your financial institution. Find the perfect loan that best corresponds to your needs.
Line of Credit
This type of loan is provided by a financial institution. It allows you to withdraw money when you want, up to a set credit limit. You pay interest on the amount until it is fully repaid.
Warning: The interest rate is variable and not guaranteed. You are depending on your financial institution and they can change the rate at their convenience. The main advantage of a line of credit is that the interest rate is generally lower than other loans. The big disadvantage is that these funds are easily accessible; some people might find themselves with greater debts than they initially had.
Personal Loan
To obtain a line of credit with a financial institution several factors will be assessed: your income (which should generally be between $35,000 and $50,000), your current level of debt and your credit score.
Credit Card Cash Advance
It is more accessible than the line of credit but requires fixed payments, so it is always important to be sure to have the funds available at the time of payments. It is best suited for people seeking to borrow large sums of money (over $2,000).
Loan without Credit Check
Overdraft protection allows you to withdraw money from your bank account even if your balance is zero. Cash advance on your credit card is a borrowed amount in accordance with your monthly limit allowed. Be careful, you pay interest from the moment you first withdraw until the amount is repaid in full.
Loans in small amounts ($250 to $1,250) are generally offered by brokerage firms. They offer loans through a simple process, without any credit checks. Interest rates are usually higher but the deposit is immediate and repayment frequency is flexible. This type of loan is most frequently used by those facing an emergency or for people with a bad credit rating.
Click here to find out more about the loans we offer with no credit check.