How to Tell What Kind of Loan You Need for Your Family’s Situation

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No two loans are created equally. While the process of borrowing money is relatively straightforward, the type of loan you need may change based on the particular situation you are in. Read on to learn how to differentiate between various loans and learn which loan is best for your family.

If You Need to Cash in Before Payday

Pawn shop loans are another option for quick cash. If you don’t have access to credit or savings, this may be the right loan for you. Though payday loans are a high-cost borrowing option, they are a temporary solution for traditionally employed families in need of immediate financing. While each lender operates differently, most payday lenders pay immediately, typically offering loans of $500 or less.

If You Have a Car and Need Money Now

Of the many options to consider when choosing the right personal loan, title loans are a popular choice for car owners. If you have a vehicle that you own outright, you may qualify for a title loan. Most lenders offer 25%-50% of a car’s value. As a result, most of these loans are between $100-$5,500.

If you’re considering a title loan, be sure to read the details about repayment carefully. Oftentimes, if the borrower can’t pay off the loan in 15-30 days, their car will be repossessed.

If You Own Something Valuable and Need Money ASAP

If you need money as soon as possible, you can consider a pawn shop loan. While this loan isn’t guaranteed, it’s a good choice for families that are in a financial bind and need fast financing. Pawn shops offer loans based on the value of an item. Loan terms will vary depending on each pawnshop, but most loans have high interest rates. Remember, when borrowing money from a pawn shop, you won’t be able to get the item back until the loan is paid in full.

Need quick cash but don’t want to deal with a loan? If you’re comfortable with selling an item of value, pawn shops are a relatively hassle-free way to get money quickly.

Loans are a helpful way for families to get fast funding. Whether you choose a payday loan, are more comfortable with applying for a title loan, or are interested in what a pawn shop may offer, make sure you select the right lending solution for your particular situation. Keep this information in mind as you research all financing options.


Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan


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