Loans With Finance Companies
by Nemo’s great uncle
If you have been turned down for a loan by your bank or credit union, you may try to get loans with finance companies. These loans often come with high interest rates that make the loan very costly.
When you first decide you need a loan for whatever reason, it is best to try to get that loan with your bank or credit union. Because you have history with them, they are most likely to offer you a loan at a reasonable rate. But if you have been turned down for a loan with them, you most likely will look for another source for that loan money.
One attractive option is to get a loan with a finance company. These companies specialize in loans for those who have a hard time getting a loan. Because they know that many people are desperate for a loan, they offer their loan products at a much higher interest rate than you could get with better credit at your financial institution.
The loans offered by finance companies can carry the shockingly high interest rates found on credit cards. These high interest rates make it a horrible loan to get in order to pay down credit card debt. In fact, the interest rates on these loans with finance companies are so high that they could drive you further and further in debt rather than offer you some escape from it.
If you have been turned down for a loan from a more traditional lender, you may have no option but to pick up one of these higher interest rate loans. Before making this decision however, try to see if there is any way to do without the loan or earn extra income to cover the new expenses. If you are looking to pay off credit card debt, getting a loan to pay it off is never a great idea. Instead, look to find a way to pay down the debt.
In the end, you may decide that you need to get the loan with a finance company. Just make sure that this is the best solution for you, and start changing your financial situation so that you can avoid racking up further debt in the future.
Jack McMullen is the Managing Principal of Cambridge Meridian Group, Inc., a strategy-consulting firm that serves Fortune 500 and technology-based companies. Mr. McMullen previously taught business strategy at Harvard Law School. He serves, or has served, on the Boards of three NASDAQ-listed technology companies as well as 12 other privately funded, chiefly technology-oriented companies. In that capacity, he helps to build value for the venture capital investors backing the companies. From 1993 to 1997 he was an informal advisor to Senator Bradley (D-NJ). In 2004 he was the Republican nominee for the United States Senate from Vermont. He is a Navy veteran who served on the staff of Admiral Rickover overseeing the retrofit of advanced technology reactors into the Navys nuclear fleet. He is a Phi Beta Kappa graduate of Columbia University in Applied Physics and Engineering and received a JD with Honors from Harvard Law School and an MBA with High Distinction from Harvard Business School, where he was elected a First Year Baker Scholar. Filmed and Edited by Daniel Ashford
Recommended Products :
Practical Finance, Financing and the Financial Plan for Small Businesses: Systems for Success
- Best practices from 50 years of management science
- Includes corporate vision roadmap segment free
- Downloadable slides in PDF included
- Practical advice for being prepared
Here is the first system developed specifically for early-stage companies by a serial entrepreneur on running the finance part of your business. Here is what you need to know to manage your company’s finances. A mystery to many new entrepreneurs and
Price:
Valuation: Measuring and Managing the Value of Companies, University Edition
McKinsey’s Trusted Guide to Teaching Corporate Valuation is Back and Better than Ever Designed for classroom use, Valuation, University Edition Fifth Edition is filled with the expert guidance from McKinsey & Company that students and professors
List Price: $ 85.00
Price:
Find More Finance Companies Articles
