Are Hard Money Loans Better Than Credit Card Loans?

Are Hard Money Loans Better Than Credit Card Loans?

People whoare in need of a loan to support their household budget, pay for a medical emergency, or solve any other financial problem usually turn toward either credit card loans or hard money loans.

Both these types of loans are taken to meet urgent expenses, but hard money loans are usually available for a longer period than credit card loans.

This is why many people struggling to make debt repayments prefer hard money loans over credit card loans. Hard money loans also have several other advantages.

Comparison of hard money loans with credit card loans

·         Does your credit score matter?

Credit card loans are heavily influenced by your credit rating. If you have a good credit score,banks will apply a small interest to your credit card loan amount. A healthy credit history will also enable you to borrow a larger amount.

However, people with poor credit scores will have to pay a much higher interest rate because the bank will see them as being more likely to default on their loans. Your credit score will also determine how much you can borrow and how long you have to repay the amount.

On the other hand, hard money lenders do not give much importance to the credit scores of the borrowers. Private loan providers only require borrowers to keep an asset of their as collateral (in case the borrower defaults on his/her debt payment) in order to secure the loan amount.

Hard moneylenders also do not place any limit on the amount of money you can borrow as long as the value of the collateral is equal to or greater than the loan amount that is being requested.

·         What are these loan types ideal for?

Credit card loans are a good option for small purchases that can easily be paid back.

People looking to purchase real estate properties and expensive assets have to turn to hard money loans for funds.

·         Which type of loan is quicker to secure?

While it is true that credit card loans are more convenient to avail, hard money loans are also quite easy to secure. These loans are usually made available to the borrower within a few days of applying for them.

However, an increasing number of private lenders are also providing same-day loans services which enable borrowers to get the loan amount transferred to their bank accounts on the same day they apply for them.

·         Do credit card loans have greater costs associated with them

In general, credit card loans have considerably higherinterest rates than hard money loans. Borrowers are required to pay monthly payment charges. They are also several penalties for late payment and exceeding the credit limit.

Credit cards are based on a revolving debt concept which allows users to pay back the loan amount at the end of the month or roll over the balance to the next month and pay interest on that amount. The biggest danger of using credit cards is that users can easily overspend and later find it hard to repay the loan in a timely manner.

Hard money loans have a fixed interest rate and a predetermined payment schedule,according to which the borrower makes his/her debt repayments. These payments schedules are quite flexible and can easily be negotiate to facilitate the borrowers.

GCP Fund Ltd. is one of the most reliable providers of hard money loans in the New York area.

We provide commercial financing for acquisition, land development loans,bridge financing loans, and interim construction loanswith flexible repayment conditions that makes it easy for borrowers to repay them.

To learn more about our services call 1-800-514-7350, or send us an email at contact@gcpfund.com.

 

Leave a reply

World Headlines