At times of financial emergencies, one of the good options is considering short-term loans. Such loans come along with APRs (Annual Percentage Rate). For instance, for $200 loan the APR’s started at approximately 300%.
There are many options for you if you are looking for a $200 loan. There are payday lenders that offer you loans that are supposed to be repaid on your payday. There are title loan providers that offer you loan really fast if it is backed by something e.g. car.
There are online installment lenders that offer loans with flexible repayment plans. Credit card cash advance is another option through which you can get a loan as low as $200.
The question arises that what kind of loan you should select that will benefit you in every way possible. The most important factor in choosing the form of loan is the APR’s. The payday loans started at 300%, the installment loans started at 40% to 300% and on the other hand, the title loans start at 100% to 350% APR. Apart from APR the duration of repayment of the loan also affects the selection of the loan. The more the repayment duration is the more interest will be added to it consequently making it difficult for the borrower. That is the reason payday loans are considered a better option than installment loans.
Before opting for getting any kind of loan consider other options like side jobs or charity organizations that offer free financial assistance. There are some federal credit unions that give loans at cheap rates. These are more reasonable than the options mentioned before. The requirement to apply for such a loan is that you have to be a member of the credit union for approximately a month or so. However, to find such unions can be a tricky task.
To get a loan one must fulfill the eligibility criteria. That includes your age should be above 18 and you should have a monthly income of at least $1000. Lenders may ask you to show them your ID card issued by the government. In that case, you have to visit them at their place.
Before applying for any kind of loan, we suggest you evaluate the below-mentioned factors to avoid trouble later;
- Comparing the Lenders
Search for as many lenders as you can. Select the one which appears good and flexible to you.
- Rates and Terms
The rates and terms are the most crucial things that are needed to be read very carefully. Different rates are applied to different amounts of loans by the lenders. Select the one with the lowest rate and flexible terms. Make sure that the lenders mention the rates to avoid any inconvenience later.
- Their Attitude
Their attitude matters a lot in this regard too. If the lender seems too pushy then you should refrain yourself from getting a loan from them. If they have the terms that seem too beneficial to be true then it might be a fraud.