Main types of loan

Understand the differences between loans and choose the best option for you

If you are thinking of visiting the United States and need financial help to fulfill that dream, then a loan may be your best option. Americans have different forms of loans for residents and foreigners, so whether your visit is a temporary one or a long stay, US banks have a type of loan for you.

On the other hand, the loan application process can be bureaucratic, even for banks with foreign credit, because all of them require a good debt repayment history. To get credit is not always an easy task, but it is not an impossible mission. Everyone can apply for a loan as long as they have good planning before applying for a loan to American banks.

It is important to have a definite proposal showing what you want the money for and how you are going to pay for the loan, since a good proposal can guarantee loan approval. In this article, we will help you find the best type of loan according to your plan.

In the US, there are five different payment periods for the loan, which are: 1, 3, 5, 7 and 10 years. These are the limits to pay off the debt, but they are all adjustable. That means you can extend the payment time, regardless of the model chosen, because every loan in the US can be extended for up to 30 years. So don’t worry if you need more time to pay off your debts.

Short-term loan

Short-term loans are of 1 to 3 years in duration. It is usually the choice of those who want to travel and do not want to prolong a debt for too long. If your case is to travel within the US and visit the country’s sights, then the short-term loan may be the best option.

It is quick and can always be shortened if the payment is made before the due date. So if your plan is to do something fast in the short-term, then this is the best model for you.

Medium-term loan

Medium-term loans last for 5 to 7 years. They are the best choice for those who want to get a fixed basis in the United States. If your plan is to live in the US for a long time, the medium-term loan is the best choice.

This loan model is also right for those who want to move, because it allows the purchase of a property, such as a house or apartment. This can avoid dependence on rent, which guarantees more independence.

Long-term loan

Long-term loans are those that last 10 years and are the perfect choice for those who are restructuring their lives from scratch and need financial support. It is usually the choice of families living in the United States, people who are married and have children and need a longer loan period to be able to organize themselves with the family routine. They are usually families who want to move house or even state.

Now that you know the US loan models, study each one in detail to understand which one is best for your planning. After choosing your loan model, give preference to banks that have a credit rate for foreigners.

Most foreigners enter the United States with low credit scores, but banks with non-US loan options understand this situation and make the loan approval process less bureaucratic. That means the banks get more accessible, so remember to take this opportunity if that is your case.

Leave a Reply

Your email address will not be published. Required fields are marked *