In the world of money, it seems the intimidating force of the loan is indeed a force to be reckoned with. If you are young and just starting out, many times, you lack experience all the way around. In your mid-life crisis? You seem to stand a better chance, but the rules are ever-changing.
If you are in your golden years, creditors love your experience but are looking forward to taking advantage of your lack of technological prowess. So, what’s the next move? Below are three types of loans most commonly required and ways technology may help you figure them out.
Technology & Types of Loan
1. The FHA Loan
When a family begins the hunt for their first home, an FHA loan is often an option on the table. It allows you to have the uncertain credit that comes with most young families, has the option for low down payments, and sometimes, you can even use a gift as the down payment.
It’s always government-funded and can be a great asset first time home buyers. However, there is always small print, and the rules and eligibility standards can change from year to year.
Thanks to technology, you can look up a good realtor in any location you plan to move to. It may seem like the lazy move, but if you don’t relish learning all the numerous ins and outs of FHA loans, a realtor will handle the work for you.
2. Payday Loan
How many of us have ever run into a financial fix where our paycheck was just not going to reach far enough into the week, and we could have really used some extra cash? If your hand is not up, you’re probably lying. Among other types of loans, a payday loan is not a new option, but it is one of the younger ones. With a payday loan, you take out a small loan against your next paycheck.
There are usually high fees and lots of fine print. Is there a way technology can help you here? Yes, you can use the beautiful invention of the internet to pit loan companies against a loan company. There is no reason to pay the off the wall fees of your local payday loan company if you can find cheaper fees one town over.
3. Secured and Unsecured Loans
These two types of loans seem to be a couple of the most common. Secured loans mean they are just that. Secured. It means that you have the collateral to cover your debt should you fall into default. Unsecured loans don’t typically require collateral, but do require a higher credit rating and usually have higher payments.
Here, you can use old tech or new tech to educate yourself on the ins and outs of these loans. It is suggested that you never jump into a decision that will leave you in debt and that you know as much as you can about the decision if you decide to.
Read, Read & Read! Whether you look up the countless articles on the internet or check out the latest books and magazines, educate yourself before you make your final plans.
The tech in this article is very low key, but it is to demonstrate how easy it is to make your way through the red tape of loans no matter what age group you fall into. Loans don’t have to be an intimidating affair. Take your time and use the technology available to you to navigate your way to smart loan choices.