Nearly everyone will need a to get a loan at some point in his or her life.  College students need school loans.  A mortgage is a type of a home loan.  You might need money quickly in order to cope with medical bills, or to help you survive after losing your job.  Where should you go to get a loan?  There are plenty of different options to choose from.

Banks can offer a variety of loans.  Whether you are seeking a home loan, a student loan, or a personal loan for another purpose, a bank is a good place to start.  One good thing about getting a loan from a bank is that there are many different banks to choose from.  You can shop around and find one that has the lowest interest rate.  One disadvantage is that if your credit is bad, a bank might refuse to give you a loan.

Credit unions are another place to get a home loan from.  One advantage with credit unions is that they see the people who have accounts with them as “members”.  This means that they may be more willing to give a loan to people who do not have wonderful credit.  Realize, however, that a credit union is unlikely to give you a loan if they do not believe you can afford one.

You might consider asking a family member or friend for a loan.  Choose someone who is much more financially stable than you are.  Friends and family are not very likely to check your credit rating before they lend you money.  Another advantage is that you will not be charged interest while you are working on paying back the loan.  A huge disadvantage is that your relationship to the friend or family member who you owe money to may become strained.  Sometimes, these relationships do not bounce back after the loan is finally paid off.

Credit cards offer loans to their cardholders.  One advantage of this kind of loan is that it is non-specific.  So, you can use some of it to pay your mortgage, and some to pay off other debts, and that is acceptable.  It is sometimes possible to consolidate this loan and other credit card balances you may have.  There are some huge disadvantages to getting a credit card loan.  You will pay a high interest rate, and it could negatively affect your credit rating.