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Finances of a salaried individual are drastically affected by the present economic scenario. Recession, economic turmoil and inflation have slowly crept into our lifestyle and are leaching out money from our resources. It is no surprise that very often one falls into cash insurgency and does not know how to restore this situation. Earlier, it was a rare phenomenon but recent constraint in the financial market has made it a ritual. It feels awkward to ask for a help from a relative, a friend or take a salary advance. Then, who to depend for sudden financial mess, that sometimes erupts like an active volcano in the middle of a month? Or maybe you require a big amount for purchasing your dream home or the car that you had been salivating for years.

Types of Loans

Before broaching the topic how to finance your financial predicament, let us first understand types of loans in terms of duration, period and amount of loan along with mode of payment. Broadly loans can be divided into two main headings and these are:

  1. Short Term Loans—This is a type of loan when an individual suddenly falls prey to cash crunch due to an emergency situation. The cause can be anywhere from clearing a bill, payment of medical expenses or car repair or vacation and others. For such a situation, loan applicant can apply for a short term loan. The duration of this type of loan is anywhere between 15 days to a month. The amount borrowed is restricted to anywhere from $50 to $1500. Sometimes loan can also be taken for a year, depending on your need for money. These loans are generally paid off by next salary check. It usually does not require any kind of mortgage. Payday loans, same day cash advance are some of the types of short term loans. The other word for it is instant loans.

  2. Long Term Loans—This is a very common and most recognized loan type. Here, one takes loan for a longer duration say 15 years or 20 years and the loan amount is reimbursed through equated monthly installments (EMIs) for the duration mentioned in the loan contract. This loan is preferably taken for purchasing a house or a car or for starting small scale business or otherwise. These are very specific in nature and big amount is borrowed from a financial institution after proper documentation.

Method for applying for loans

For applying for loans, start with self-check method. Evaluate your strengths and weaknesses, determine your eligibility criteria and then apply conveniently online.

  1. Local Address—any lender would like to obtain your local address. As an applicant, you must have a proof of your address. You must be a citizen of US, for seeking loan in US. Both for short term loan and long term loan, this is a deciding factor, can be a reason for rejection of your loan application.

  2. Regular Job—when applying for loan, applicant should have a regular job within country. He or she should be employed with a firm and drawing a regular salary. This is a mandatory aspect for short term loans as payday loan, same day cash advance, online loan and others.

  3. Age—as an applicant, you must be 18 years and above. In other words only an adult can apply for loans in US.

  4. Checking Account—mostly loan is directly connected with your saving account. Repayment is directly linked to your bank account. If you do not an account with a regular or a nationalized bank, it is better to open and wait for at least 3 months for becoming a validated account holder.

  5. Identity proof—not necessarily but you may be asked for identity proof. So be ready with your telephone bill or house address or social security number issued by Government.

If you fulfill all the above, then you are eligible for loan. However, another question which comes as a poser is “how to get loans” and from where. For an US citizen, online loan approval and sanction procedure has become an accepted norm. One can get approval for both through online means but one has to be very strict about eligibility criteria and adhere to them. Your loan application can be rejected without any intimidation and you might lose your chance for instant and fast cash approval.

Chances for rejection

Any loan application which does not meet above points is liable for rejection. Further, if you have bad credit record, it is better to mend it. One can do so by contacting banks or financial institutions and enquiring about step by step procedure. If in doubt, one can even contact a financial advisor and seek an advice on how to repair bankruptcy status and have clear portfolio for applying online or with financial institutions.

Another factor which can ruin your chances for loan approval is, if you commit more than your total earnings. Commit as per your means and according to your overall worth including property cost and other materialistic possessions. This usually becomes a mandatory point if you have are applying for long term loans as loans for car, or for house or for starting a business or for business expansion and others.

For short term loans, usually creditors do not telecheck credits record. Neither are they interested in the purpose for loan. Their only point is an applicant should have a steady job with a checking account. For short term loans, one can apply for personal loans online. These are of various types but bring money instantly and are transferred directly to your saving accounts. Few examples of short term loans are payday loans, same day loan, cash advance loan and others.

How to apply online

There are quite a few financial portals which offer online secured and unsecured loans. One can apply for them by filling up an online form that is available on their website. Nevertheless, there is a statutory warning, always apply for loan with a company which has built a reputation in the market and holds a good customer review. It is a secured way to eliminate chances of being duped and being caught in a labyrinth of debt and repayment.

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