Depending on your unique needs there is a wide variety of sources to borrow money form. Very often, these sources specialize in specific types of transactions. Therefore, it is important that you do your homework before contacting a lender. By shopping around you not only save money, you also find many perks for choosing one lender over another.
The table below provides a broad range of lending options. The terms and conditions will vary no matter which option you select.
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Lender Type
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Pros
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Cons
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Retail Banks
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Convenient Locations
Offers Competitive Rates due to competition
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Credit ratings are heavily scrutinized
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Savings & Loans
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Can offer lower rates retail banks
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Credit ratings are heavily scrutinized
Few locations
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Savings banks
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Can offer lower rates retail banks
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Credit ratings are heavily scrutinized
Few locations
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Credit unions
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Can easily become member
Can offer lower rates retail banks
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Must be a member
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Consumer finance companies
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Credit ratings are less scrutinized
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Rates can be higher due to added risk
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Insurance companies
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Possible to borrow up to 95% of the cash value of a policy
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Must own the policy
Reduces benefit to any survivors
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