Thrifty Thinking: 4 Types of Loans You Can Get During The Pandemic

Coronavirus took everyone by surprise.
When the World Health Organization (WHO) declared the coronavirus as a global pandemic in March, countries closed their borders. Business operations stopped. The economy went into a recession.
Tough times like this, it’s always safe to have extra cash at hand.
Most people’s budgets are now in disarray. For some workers, companies have reduced their rates. Others went on forced leaves until their employers went back to business.
For practical purposes, it’s better to find options where to get additional money to supplement your household budget. Let’s look at the four different types of loans you can get during the pandemic.

1. Pawn Shop Loans
If you have any valuables like jewelry, musical instruments, or a rare antique, you can use them as collateral to get a pawn shop loan. Since it’s a secured type of loan, you can easily get the money you need without additional paperwork.

2. Payday Loans
Payday loans are easy to get loans. It doesn’t require a credit check. Most often you need an accomplished form, valid ID, utility bill, and proof of employment (i.e., pay stub or certificate of employment).
Since it’s a high risk for lending companies to give out payday loans, the interest rates are high. So, make sure you only get a payday loan when it’s really necessary.

3. Auto Title Loans
Another type of secured loan is an auto title loan. Unlike a pawn shop loan, you don’t need to leave your car at the lending company. You can still use your car. As collateral, you are giving the lending company rights to your car if you are not able to repay your loan.
Repaying an auto title loan is light and easy. Unlike pawn shop and payday loans, the repayment amount is spread over six to eight months. This gives you time to budget your money wisely to make sure all your payment schedules are met.

4. Signature Loans
A Signature Loan is an unsecured loan that’s also known as a character loan. A bank or lending company provides you with the cash you need based on your capacity to pay. You will need proof of identity, proof of residence, proof of employment, and proof of good character by providing six personal references.
These types of loans are some options for you to get the money you need at this time. In most states, there are a number of banks and lending institutions that offer them.

Whether you are underbanked or unbanked, these loans can help get you through the tough times. For example, you can get good loans in Houston that will not use credit checks as the only qualifier for loan approval.

Review your options and learn more about the lending companies and their products. Make sure you are dealing with trusted providers that won’t put you in a cycle of debt.

Learn more about pursuing a mortgage for seniors.