Ah, retirement. Such a beautiful time when you get to enjoy freedom from work and responsibilities, go spend time with the family, and relax while sitting on a boatload of money.
Yeah, about that money part. See, the problem is, you don’t have any funds built up to be considered financially secure.
Maybe it was because your job offered very little (or zero) contribution to your 401(k) plan. Maybe you did freelance and forgot to put together a retirement plan of your own. Or maybe you just weren’t the best at saving your funds.
No matter what the case is, you’re kinda broke, and you don’t know how to get the money you need to live comfortably.
So do you just go back to work again? You could, but that would pretty much ruin the whole point of retirement.
How about a better idea: applying for cash loans.
“A loan?” you say, jumping out of your chair. “That’s ridiculous! Why would I get a loan when I’m retired?”
Just sit back down in your recliner and hear this out, because this option is a lot better than what you think.
Why Applying for Cash Loans During Retirement Is Actually a Good Idea
Cash advance loans offer more than just money. They offer stability, a reliable resource, and a breath of fresh air, just to name a few. Keep reading, and you’ll see what we mean.
How Your Amount Is Determined
Before you think of which loan to get, you need to know what it takes to apply for one first.
When it comes to applying for a loan, most lending companies require you to have some sort of wage that they can go off of. However, you’re retired and living off of a small amount of cash, so the lenders would size you up differently.
This happens one of two ways: checking out your drawdown on assets or your asset depletion.
When lenders take a look at your drawdown on assets, they count your regular monthly withdrawals from your retirement accounts as income.
In other words, they see just how much you take out from your retirement plan each month and determine the amount they should give you from there.
The other way of doing things is through an asset depletion.
Using this method, the lender subtracts your down payment from the total value of your financial assets. Then, they take 70 percent of those remaining assets and divide them by 360 months.
In any case, either of these options are perfect for those in a retirement position to still apply for the loans that they need.
Secured vs. Unsecured Loans
There are also two main types of loans you can apply for: secured and unsecured.
Secured loans require you to give up a portion of your assets as collateral. This ensures to the lender that if something goes wrong and you aren’t able to pay for the loan, they can simply take your possessions as their own.
As worrisome as this may sound, secured loans are actually pretty good loans to look into.
First off, they’re more common than unsecured loans, meaning you’ll have more chances to apply for them. Secondly, it’s easier to get approved through a secured loan compared to an unsecured loan.
Speaking of unsecured loans, the benefits they possess are obvious: you don’t have to give up your financial assets as collateral in order to apply to them.
When this is the case, the lenders will look directly at your retirement income to determine how much they can give you. That being said, how much you make is a big factor in how big your loan will be.
Both options are viable ones to get you the money that you need – and fast.
What Do You Need the Loan For?
This is arguably the most important part that you need to answer before applying for a loan.
You need to be able to say more than “I need the money” when you apply for your loan. Remember, these are things that have to be paid back, and if you don’t spend the money wisely, you’ll just end up blowing your funds.
Take some time out to really consider what you need these loans for. Do you have bills to pay? Did your car break down? Do you need to pay hospital bills? Are you planning on saving or investing?
One of the biggest mistakes borrowers make is that they don’t know what to do with their funds. Don’t make the same mistake and be prepared to use your money the right way.
The Types of Loans You Can Use
Now that we’ve cleared all of the most important stuff, we finally get to talk about what types of loans you can apply for.
As we’ve hinted at before, a cash loan is not a definite type of loan. In fact, most loans that you can think of can be placed under this umbrella term, which makes it all the more important that you know which type of loan you need.
There are two main things that connect all cash loans together: 1) they’re all short-term loans, and 2) they’re quick loans, meaning you can apply to them in just minutes and hear their decision within hours.
Sounds like a pretty good deal, right?
With that said, let’s have a look at some of the loans you may be able to qualify for.
A mortgage loan is pretty straightforward. This type of loan uses your home as collateral.
Most homes can pull in some pretty serious lending funds, but the move is a double edge sword, as you have to pay back the loan over time.
That being said, applying for cash advance loans through your mortgage is a sure way to be financially secure.
As the name states, personal loans are loans that are determined based off of your personal income.
Remember what we said before about how your loan amount can be determined based off of your drawdown on assets? This is where such a thing comes in handy.
Since you don’t have a personal income, you have to base it off of how much you pull monthly from your fixed retirement income. This makes personal loans great for when you don’t need to pull a lot of money at one time.
Student Loan Financing
Who would have thought student loans could actually be a good thing?
Most student loans take years, even decades, to pay off. Even more so, the interest can constantly build without you even knowing about it, leaving you with much more than what you started out with.
If you’ve gone to school and have loans out in your name, your student career may be coming back to haunt you.
Sometimes, the government will withhold a portion of your Social Security funds if you still have federal student loans to pay. This could explain why you aren’t getting as much money as you were hoping for.
Thankfully, there is a way to fix this. You can refinance your student loans, or even go through with a student loan forgiveness program.
Doing this will reset the value or payment schedule of your loan, which will get the government off of your back – and get you the money you rightfully deserve.
Reverse Mortgage Loan
A reverse mortgage loan is a bit more complicated than a regular mortgage loan, so let’s break it down.
A reverse mortgage loan is a loan with a value that’s based on the equity of your home. Your home’s value is given by the lender, and then you’re given the option of a fixed income or a lump sum of cash to do whatever you need done with it.
The major difference between this option and other home refinancing loans is that it can’t be paid back until after you die or move out of the home, meaning you really never have to worry about paying anyone back.
As a retiree, these loans may actually work in your favor.
A payday loan is a short-term loan that’s borrowed against your paycheck – in this case, your monthly retirement check.
Applying for a payday loan is super fast, and almost anyone can get one despite their income or credit situation. Be careful about borrowing hastily, though, as payday loans have a high interest rate compared to most other loans.
Use this option for when you really need some fast cash.
We know that you’re in love with Betty the ’64 Chevy Impala, but it’s about time that she took a rest.
If you’re in need of another car, then getting a car loan is the best quick loan you can ask for.
The beautiful thing about getting a car loan is that it doesn’t have to be taken out on a new car. Heck, it doesn’t even have to be used only at a dealership.
All you need to do to get a car loan is to let the lender know you’re planning on buying a car and you’re in need of a loan.
Once you get the information involving the car, including how much the owner wants, you just tell the lender what you need and voila – you’ve just bought yourself a new car.
Of course, some lenders will want to make sure you’re in good credit standing before they lend you the money. If your credit is not the best thing in the world, you may need a cosigner to help you out.
Debt Consolidation Loans
If you’ve accumulated a lot of debt over your life, there’s a good chance that those loans are returning to haunt you now.
Many times, people who have gathered a lot of debt will have to pay it all back with interest, and being on a fixed retirement income makes it extremely hard to do that.
With debt consolidation loans, you can gather up all of the loans you’ve taken out into one neat package, and simply pay one flat fee each month instead of trying to pay off ten different companies at once.
We think this sounds like a pretty good plan.
Use Your Judgement
At the end of the day, no matter which one of the fast cash loans you plan on applying for, remember that you need to choose your loan wisely.
Different loans will offer you different amounts of cash at a different price (in the form of income or collateral), and you need to know which loan is worth investing in.
Take a good look at your budget and your financial assets before you make the decision to invest in a loan. knowing how much you have can help you to determine how much you’ll actually need for the project you have in mind.
If you only need a little financial help to get out of a stuck, you should look into a smaller loan that requires very little collateral or income on your behalf. Likewise, if you need a larger amount of cash, consider investing in a bigger loan.
Only you know how much you really need to satisfy your financial needs, but no matter what choice you make, you’ll still have the financial stability you’ve been looking for.
Now you really can kick back and relax. After all, you’ve earned it.
We Can Help with Your Financial Needs
Now that you know just how awesome cash loans can really be, you need to know the best place to go in order to apply for one. Luckily for you, we’re here to help.
Here at Bonsai Finance, we try our best to give our clients access to the funds they need, when they need it. Check out our site to apply for a cash loan with no credit check, payday loans, personal loans, quick loans, and a lot more.
We look forward to hearing from you soon.
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