There are times when you need money right away and you have no choice but to find a loan. This can often be for a small amount of money that does not require a long-term commitment.
This is where 12-month loans can be a perfect solution to your problems. The cost of the loan can vary greatly depending upon many factors. Where you get the loan can also affect how much the money will cost.
There are a variety of reasons why someone might need 12-month personal loans. Oftentimes, the cause is something unexpected. Perhaps your car needs repairs right away and you do not have the cash.
Sometimes a large medical bill will need paying which can completely blow your budget apart.
Other times, you may need the money for something which is already planned and you are willing to pay the extra interest in order to spread the payments out over one year.
Many people will get 12-month unsecured loans for things like vacations. While it would be ideal to put the money away from a little at a time and save up for a vacation, it is not always feasible for everyone. In these instances, a short-term loan is in order.
Why get a short-term loan?
Many people would prefer to get a loan with the payments spread out over two or even three years.
This can be tempting when looking at the lower monthly payment; however, you need to keep in mind that personal loans often carry much higher interest rates, and stretching the loan out over more than 12 months will result in a much higher cost for the borrowed money.
It is much better to take the higher monthly payments and pay the loan off as quickly as possible.
There are even 12 months of no credit check loans which can be obtained online as long as you have a bank account and are employed. This makes it quite easy to obtain a short-term loan.
What kind of rates can you expect?
The rates charged by most lenders can vary greatly from individual to individual. The main factors which will determine the cost of your loan are going to include employment, credit score, and whether or not the loan is secured.
As you can imagine, cash loans for unemployed people are extremely hard to come by. The 12-month loans online that I mentioned earlier are out of the question. Most lenders will require at least a six-month work history with pay stubs to show proof of work.
12-month loans with bad credit
Individuals with a good credit score will undoubtedly have a huge advantage over those seeking 12-month loans for bad credit.
The simple fact is the lower your credit score, the more interest you’re going to have to pay for your loan. Lenders are going to require this extra interest because you are at a bigger risk of defaulting on the loan.
12-month bad credit loans are going to carry extremely high-interest rates and will also probably have severe penalties and extra fees if you miss a payment.
Finally, you can get a much better rate on 12-month installment loans if you have something to use as collateral.
This has been the basis for operations with pawn shops for decades. If you have something of value you do not want to sell you can still use it to secure the loan and get a better interest rate.
This can be a car title if you own it outright, or perhaps you have a piece of valuable jewelry to use. Traditional banks will even use assets such as CDs or stock certificates in order to issue a lower interest loan.
This is one way to get 12 month loans for people with bad credit. If your credit is very bad then your only hope may be a pawn loan.
What are the best places to get 12 month personal loans?
To start with, there probably are some places you do not want to go to get a short-term loan unless you absolutely have to.
One of the worst places to go would be a payday lender. 12 month payday loans are going to carry some of the highest interest rates allowed by law. These loans are typically used to get from one paycheck to another and not as an installment loan plan.
Another place you can probably skip would be the local big bank. The major banks are not in the habit of making small amount, short-term loans.
So, are there any places to get a good 12 month loan? One of the first places to try would be family members.
This can often be a tricky subject in most households; however, if the loan is made official with a contract it can be a great situation for both parties.
You can get a great interest rate and the family member can receive a terrific return on their investment which could be much higher than any other current investment vehicle.
If friends and family are out of the question you could try your local credit union. Credit unions do a great job of serving the member account holders.
They do this by providing extremely low-cost loans which can be some of the lowest interest rates around. If you’re not a member of a credit union do some checking around and see if there is one in your area that you can join.
Finally, if you work at a small business you may try your employer for a short-term loan. Many small business owners are willing to help out employees by advancing the money on their paychecks.
The employer can easily remove the weekly or monthly payments from the paycheck.