Didn't Save Money for Christmas? 2 Options to Get the Money You Need

If you have not been saving money for Christmas throughout the year, you may be worried, especially if you have a lot of people to buy gifts for. If this is the case, below are some options you have to get the money you need so you can purchase the gifts that you want.

Signature Loan

A signature loan is also known as a character loan or a good-faith loan. It is a personal loan that banks or finance companies offer that use only your signature along with a promise to them that you will pay the money back as collateral. You can use this type of loan for anything that you want, but you should be aware that the interest rates for signature loans are sometimes higher than those for other types of loans, so make sure you check on this.

You will need to have a good credit history to obtain a signature loan. In some cases, the bank or finance company may ask that you have someone cosign the loan if you do not have great credit history or enough credit. This person would be required to sign a promissory note and would have to take over payments if you fail to pay them.

A signature loan is an unsecured term loan, which means you do not have to put up any kind of collateral, such as your home or car, to be approved for the loan. Once the loan is paid off, it is completely closed. At this point if you wanted to obtain more money, you would have to apply for another loan.

Secured Personal Loan

A secured loan is a loan that is protected by collateral such as your home or vehicle. The bank or finance company will hold the title or deed until the loan is paid off. If you do not own a car or a home, you can use personal property, stocks, or bonds as collateral.

Secured loans have a lower interest rate when compared to signature secured loans because collateral is used. Secured loans are often used for homes or cars, as you can borrow a much larger amount than with personal loans. You also will have the option of longer repayment terms.

A secured loan would work well if you also needed money for something else, such as a new car. You could borrow enough for the car and extra to cover the money that you need for Christmas. You can still borrow a lower amount, however, if you do not need to make any kind of large purchase.

If you do not pay your secured personal loan, the bank or finance company will take the collateral you put up.

Talk with someone at a bank or financial company such as Las Vegas Finance to learn more about these loans.