When we think about financial freedom and economic stability, debt management and credit literacy are probably the first things to come to mind. Paying off debt should always be top priority, but sometimes you can achieve better financial footing by extending your credit limit.
Read on for some concrete wants to use loans to achieve financial stability.
Home Equity Loans
If you own a home and need cash to cover an unexpected expense, you might be in luck. You could be eligible to borrow an amount against the value of your property.
This lending method is a popular way to cover expenses caused by home repairs, maintenance, and even renovations.
To determine if you’re eligible to apply for a home equity loan, contact your mortgage lender or bank financier to learn more about your options.
Credit Card Withdrawals
Did you know that you can take your credit card to the ATM for some quick cash? Depending on your credit card terms, you might be able to take out liquid cash against your debt balance.
Many credit cards give you the option to withdraw money from any ATM for a certain interest rate.
To determine how much it would cost for you to borrow cash from your credit card balance, contact your creditor to learn more about the specific terms and qualifications.
Title Loans
If you own a car or motorcycle, you could be sitting on a lump of cash at your disposal. Title loans are loans that use the value of your vehicle as collateral to secure the borrowed amount.
Since the vehicle value determines eligibility for title loans California is one of the states that allows lending for borrowers without great credit or verifiable income.
For those who need cash fast and don’t have the credit or salary for traditional lending methods, a title loan could be a great way to get on your feet.
Savings-Secured Loans
If your goal is to build a savings or rebuild your credit, a savings-secured loan is certainly something to consider. This loan method uses a savings account or CD (Certificate of Deposit) instead of another piece of collateral to secure the loan.
In most cases, banks will use the full collateral amount to mirror the loan amount you’re eligible for.
This isn’t the most effective method for people who need a large sum of cash fast, but it’s a creative solution to help borrowers with poor or non-existent credit. Improving your credit score is one way to increase the amount you’re able to borrow using other lending options and credit extensions.
Financial stability is a multifaceted state that includes having security in where you live, what you drive, where you work, and more. Ensuring that you have an emergency expense plan and some savings to get through a crisis is one of the most fundamental building blocks of financial freedom.