Private individuals, who have a great deal of money at their disposal, may specialize in lending money to people who find it hard to qualify for loans provided by banks and credit unions.  Private money lenders are not much concerned about the credit rating of the borrower. Who is a private money lender? A private money lender can be an individual, group of individuals or a small company that lends money at high rates of interest.

Some people resort to private money lenders, as they don\’t have enough time for the lengthy procedures for loans from conventional lending institutions. Another advantage is that you will receive the loan amount in a very short time. Apart from those with bad credit ratings, real estate is another domain where these money lenders are involved. There are many people, who take loans from these lenders for purchasing or refinancing real estate.

These money lenders often charge high rates of interest and fees. In most cases, the loans are given for a short term that can range between 30 to 180 days. The interest rates can be anywhere between 12% to 20%. It has been noticed that in most cases, real property are used as collaterals for such loans.  Choose the one with a comparatively lower interest rate. However, make sure to understand the terms completely before signing the documents. Borrower may not get the same degree of consumer protection, as in conventional loans. So think about it.

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder\’s promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. It allows the consumers a continuing balance of debt, subject to interest being charged

The main benefit to each customer is convenience. Compared to debit cards and cheques, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards. It offers rewards and benefits packages, such as offering enhanced product warranties at no cost, free loss/damage coverage on new purchases, various insurance protections, for example, rental car insurance, common carrier accident protection, travel medical insurance. Credit cards can also offer reward points which may be redeemed for cash, products, or airline tickets.

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged.  In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider. Though credit cards offer convenience, but be careful when using it. It might cause you to be charged with big interest rate without you knowing.