What choices do I have when I want to borrow money?
May 6, 2007 by Michael Redbourn
If you need to borrow money and your credit is good then you'll find that you have lots of choices which include.
1. Credit card. Depending on which country you live in there may be anywhere from a half dozen to a thousand credit card companies that will lend you money.
2. Overdraft protection. This will cover a short term cash shortage in your bank account and also covers NSF (not sufficient funds) cheques.
3. Personal or consumer loan. You can get a personal loan from a bank, trust company, credit union, or finance company.
4. A home mortgage. This is usually a long term loan you get to buy a home.
5. Home equity loan. You can borrow against the money you have invested in buying your home.
6. Lease. This is really a long term rental on a product such as a car and is similar but a little different to a loan.
7. Buying on margin. You borrow money from your broker to invest. The brokerage firm sets the interest rate. The more you borrow the lower the rate will be.
8. Borrowing against a retirement plan. You can often borrow against money in your retirement plan rather than simply withdrawing it but you probably have to include the amount on your income tax return.
If you are not sure your credit is good then you might want to get a copy of your credit report before you apply. You can get your credit report online or through regular mail.A mailed report is often free whereas but there is normally a charge for an instant online report.