For almost two years now, there has been a lot of uncertainty about money and the economy. People have been out of work. They’ve switched jobs. They began working from home. There was a lot of time for introspection, but there has also been a lot of time to worry. This has been a tough time, especially if you are a parent. There are many things to keep track of, one of the most important being finances. We all go through hard financial times, and if you need some extra money it can feel overwhelming. However, even if you don’t have a high credit score there are lows that can help you get through it and get back on top.
While you might grimace at the thought of student loans because they have a bad reputation, they can actually help you out a lot when you’re trying to fund your child’s education. Federal student loans don’t require a credit check and do not affect your credit score. This is incredibly helpful when you need money but don’t have a great standing credit-wise. Even if it’s not the tuition that is the problem, student loans can help students and parents alike get through school financially.
Debt Consolidation Loans
Do you have debts to multiple lenders? Another loan may sound like the last thing you need, but if you are overwhelmed by various debts, a consolidation loan will help you lower your interest rate and simplify your debts into a single monthly payment. You will need to make these payments diligently, but if you need a clearer view of what you are dealing with debt consolidation loans can provide that peace of mind.
Auto loans are a type of secured personal loan because they usually require collateral. This is when the car is subject to the payments you are making on it. If you don’t pay the bills on time, the vehicle could be repossessed. While this sounds scary, if you have a plan in place and keep up on your payments it shouldn’t be a problem. Auto loans are very helpful when you need a car and don’t have great credit. Just be sure to keep up on those payments and you will be fine. If you’ve been in an accident or need transportation all of a sudden but don’t have the money, auto loans are the way to go.
Unlike many other types of loans, installment loans typically don’t require a good credit score. Since these loans are riskier for the lender, they often have high interest rates. Still, when you don’t have credit history or are struggling to improve your bad score, this type of loan can be a savior. Installment loans can typically be found wherever you are. So if you live in San Antonio, look for Texas installment loans; if you live in Albuquerque, look for New Mexico lenders.
Home Equity Loans
Another type of loan that can be quite helpful during hard times is home equity. This is when you are paying a mortgage on your property and have some equity to show for it. Often called a second mortgage, this type of loan uses the equity of the house paid to you in a lump sum. If you fail to pay back the money, however, your house could be in danger. The lender may even repossess the property if you take a very long time to pay the money you borrowed back. Still, if you have a plan for returning the money but need it right now, using your home’s equity is one way to get the cash in your bank account.
When times are tough financially, it’s difficult to be happy. You need relief. If you don’t have many options and need more money for a rainy day, there are luckily many different types of loans to choose from. Parents who are doing their best can gain access to money even if they don’t have a good credit score. Whatever you do, make sure to pay the money back you owe as soon as possible and get back on top of your financial life.
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