Loans come in all shapes and sizes. They come with different lengths, different interest rates, and different terms. Educating yourself on the type of loan that will work best for you is the first thing you need to do when considering taking out a loan. What is your time frame? How large is the purchase you need to make? What can you afford? Below are descriptions of some different types of loans to help you recognize which might suit you the best.
Student Loans
Student loans are loans that are meant to fund an education. Usually, this means that they go toward expenses related to undergraduate and graduate degrees like tuition, housing, books, and more. Student loans payments often do not begin until after the education is complete. This is nice, because you don’t have to worry about paying the loan back while you’re still in school.
Mortgages
Mortgages are loans that go towards buying real estate. If you are going to buy a home, you would take out a mortgage. If you don’t pay back this loan, you risk losing your home. Mortgages often have the lowest interest rates of any other loan. However, they are often some of the largest loans you can take out.
Auto Loans
These are loans meant for buying a vehicle. There are many different options for auto loans depending on what you are buying and what you can afford. Like mortgages, auto loans use your property as collateral, so if you don’t pay, you could lose your car.
Small Business Loans
Starting a new business is a risky venture. It is a lot of hard work and requires a lot of money upfront. This is where small business loans come in to play. Banks offer loans to get small businesses off the ground. It’s a good idea when starting a business to keep your personal debt low, because often times, personal and business finances can overlap for small business owners. These loans are large and often have long payback periods.
Payday Loans
Payday loans are loans that are meant to get you through to your next payday. Often times, unexpected expenses come up that require more money than you have. Payday loans can be a good solution for these expenses. They are short-term and are meant for relatively small amounts of money. You can also get installment loans, where you can pay the loan back in smaller increments rather than the one lump sum you have to pay back for payday loans.
If a payday loan sounds like it is the right option for you, you should consider calling Short Term Loans. We have competitive rates and friendly, fast service that will get you the money you need when you need it!
