Apply for up to $1500 with 6 months to repay
Title Loans with Direct Lenders
If you’re a homeowner, you can borrow money using your property through a homeowner loan. Also referred to as a home equity loan, this is where the value of your property is taken into account to determine how much money a bank or a lender will allow you to borrow.
Since this is a secured loan, it is essential that you own the property to qualify for the loan. Among the properties that can be used for this loan are houses, flats, bungalows, and cottages. The property will be used by the lender as their security if you do not end up paying off your debt. While this is usually considered a sure-fire way of getting credit, you do have to consider the risks involved. You can lose the property if you cannot pay back the loan.
Homeowner Loan Features
The loanable amount would be hinged on how much your property is valued at. Usually, you will be allowed to borrow a set percentage of how much your home is worth. The term is usually spread out between 1 and 35 years. Interest needs to be paid for the entirety of the loan. Most lenders would also need you to go through a credit check and an affordability assessment to get approved.
Most lenders these days allow borrowers to take out a loan from £1,000 to £2.5 million. However, there are factors that can affect how much your final loanable amount will be. Among these are the overall value of the property, your credit record, the loan term of your preference, and your age. Your income will also affect how much the lenders will let you borrow.
How much the loan will cost is going to be heavily determined by the interest rate. It could either be variable, which means that it could change over time, or it could be fixed where it stays the same throughout the loan term. Expect lenders to offer variable rates as fixed rates tend to be less common.
Paying Off a Short Term Loan with a Credit Card
Paying off a loan using a credit card is possible; however, you must do the math first before actually using it to settle the advance to know whether you’re saving money. Otherwise, you might only be creating another form of debt.
Credit cards have been used a long time ago for purchasing groceries, paying for tuition fees, shopping online, even unlocking closed doors. This can also help you build a credit history in case you don’t have one but the questions are, can you pay off a loan with a credit card? And even if it does, should you use it to settle the debt?
How Credit Card Works
Probably, you know that you just need to swipe the credit card to a payment terminal or enter the credit card details when paying online; however, you may not realize that you are creating an actual debt every time you use it.
When you use your credit card to purchase, to pay, or to get a “cash advance”, your card balance increases. And, as it increases, it earns interest until it’s fully settled. While you can spend up to your credit limit, you also have the option to repay your balances so your available credit increases.
While using your credit card is considered as a debt, it’s very different from a loan. For one, it has a 30-day grace period. This means that your account will only acquire an interest if you fail to settle it in one month. Therefore, if you settle the bill on or before the grace period ends, you are getting an interest-free loan. On top of this, you are increasing your credit rating.
Another good news with having a credit card is that it can be used to settle loans, at least in some instances. Some credit card issuers may allow you to pay it directly via your online account or, you can request for a credit card convenience cheque. But then again, you have to know if you’re actually saving money or creating a new form of debt.
When you settle a loan, you might be charged with a balance transfer fee. In addition, some credit cards charge more expensive interest rates compared to personal loans, thus be sure to do the math first before paying the loan with a credit card.
Ready to Start Streaming?
You’re just a step away towards financial freedom. Apply now!