rowing Sources.docx References Review View Help Tell me what you want to do Editing V 18 A A BIU AD SUR NOTRUFU DUWUWU O A . A Directions: Read the characteristics carefully and fill in the possible Uses? column by writing down what purchases are likely with that borrowing source Possible Uses? Borrowing Source Characteristics Banks and credit Banks and credit unions offer a wide variety of unions loans, including personal loans, small business loans, home equity loans, home mortgages and credit cards They are a good place to start if you are searching for a loan because of their many options. If you build a relationship with a banker, he or she can help guide you to the loan that makes the most sense for your needs Small business, small student loan, mortgages and loans to pay off credit cards, Asmall business needs money for capital they can ask banks and credit unions for loans Check-cashing stores For some people it is difficult to open up a bank account or get loans, either because they have ne permanent address they don't have the money to make the minimum deposits that some banks require, or they have very poor credit histories Check-cashing stores provide some of the services that banks do, such as cashing checks and making small loans. They can be useful for those who are not able to open a bank account However, they usually charge much higher fees for their services than banks do. Credit cards Banks, credit unions, and other financial institutions offer credit cards. With a credit card you are able to borrow up to the credit limit of the card, and if necessary you are able to make amall monthly payments on the balance of the card However credit cards charge interest on the amount borrowed, and in many cases the Derma of the cand are not met (such as late et Predictions. On MacBook Air ce Borrowing Sources.docx References Review View Help Tell me what you want to do Editing . . .. Ev EVA v 18 ' ' Mortgage lenders While many banks offer home loans there are some financial institutions that specialize in these loans Because of their specialization, they are sometimes able to provide better rates or other benefits to home buyen. Mortgage brokers often serve as intermediaries between the buyer and mortgage lender, helping the buyer to find a loan that meets her or his needs and preparing the necessary paperwork Mortgage brokers often work with many different lenders, including banks and private lenders to find their clients the most favorable loans Businesses Many different types of businesses offer credit to buyers. Some retailers offer credit cards that can only be used to make purchases at their stores Others like auto, furniture, and electronics dealers, offer loans to help customers buy their products. Unike most banks, these companies often approve loans even to customers with no credit history or with poor credit history, thus giving them the ability to begin improving their credit scores The terms on these loans vary widely, so it is important to check if one can find better terms at a bank or credit union Because of the olsy credit, one possible darger of this type of loan is that it can lead to impulse shopping buying nonwealth-building assets that one can't afford Loans against cash value in life insurance policies Wholenfe insurance policies accrue cash value that may be used in the form of loans or withdrawals by the policy owner Once the funds are borrowed, the policyholder mayor may not let to repay the loan Interest rates vary for these loans but are usually lower than from other sources. However unexpected for Text Predictions on MacBook Air od