Loan Types
Payday Loans:
A payday loan is a financial product that provides consumers with a small dollar, short-term loan. These loans are typically 2 weeks in duration. Using a simple application process, payday loans provide people with a financial option for quickly acquiring money they need to cover small, often unexpected, expenses.
Payday loans generally have these features:
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Loan amount typically ranges from $300 to $1,000.
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Loan is short-term, to be paid back in full in 30 days or less. Payment is normally due on the borrower’s next pay date and can be extended by paying only the interest.
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Loan is repaid by automatic electronic withdrawal after the borrower’s paycheck has been directly deposited in their bank account or through a post-dated check (provided by the borrower at the time the loan is made).
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Lender charges a fee for the loan that can be calculated as an annual percentage rate (APR). Typically the fee for the loan is $15 for each $100 borrowed, but be sure to check with each lender’s terms as they can differ.
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Loan is typically unsecured, and the lender assesses the borrower’s ability to repay the loan based on a variety of criteria.
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Loan is available to people over 18 yrs old with proper identification.
Installment Loans:
An installment loan is similar to a payday loan in that it’s a lending product that enables consumers to quickly acquire money needed to pay for immediate, and often, unexpected expenses. However, an installment loan is repaid over time based upon a set number of scheduled payments, instead of one lump sum like a payday loan.
Installment loans are able to provide consumers with larger loan amounts than payday loans. However, because the loans are larger, installment lenders typically use additional criteria and qualifications to approve a customer for an installment loan.
Installment loans are growing in popularity because they have a fixed repayment schedule and can offer a way to avoid excessive late fees, reconnect fees, and other penalties against your personal accounts.
Installment loans generally have these features:
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Loan amount typically ranges from $150 to several thousand dollars. Principal, interest and other finance charges (fees, credit insurance premiums) are repaid in fixed monthly installments.
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Can be renewed every few months, with a new charge of interest, fees, and credit insurance premiums. Renewal is sometimes accompanied by a small “payout” representing some of the principal already paid off in previous installments. The loan amount typically resets to the original amount borrowed, or is increased.
Short-term installment loans are typically unsecured. The lender assesses the borrower’s ability to repay the loan based on a variety of criteria.
Title Loans:
A title loan, also called an auto title loan, is a type of secured loan where the borrower can use their vehicle title as collateral. Borrowers must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for the loan. When the loan is repaid, the lien is removed and the car title is returned to its owner. If the borrower defaults on their payments, then the lender has the right to assume ownership of the vehicle and sell it to repay the borrower’s outstanding debt.
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Title loan lenders typically do not check the credit history of borrowers and only consider the value and condition of the vehicle that is being used to secure it.
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Title loan lenders require the borrower to take their vehicle to their location so that they can assess it’s value. This process usually takes only 15 minutes and borrowers can walk out with their cash loan.
In addition to verifying the borrower's collateral, many lenders verify that the borrower is employed or has some other source of regular income.
Storefront Payday/Installment:
Store front loans are cash advances, similar to payday and installment loans. The main difference is that consumers have to physically go to a location to pick up the loan amount. They can apply and be approved online, but will need to ultimately visit the closest location (“Store Front”) to obtain the cash loan. Store front lenders can typically provide cash faster than online payday loan lenders since they don’t have to wait on complete bank account processing.
Line of Credit - Debit Card:
A revolving line of credit loan is credit extended to individuals to be used as needed over a period of time. It uses a debit card to provide the credit, which the consumer uses for purchases. A line of credit varies in the total amount that is made available to the consumer, but is flexible in how much is borrowed and how often. The lender will set a maximum amount the individual can borrow, allowing them to access the funds on an as-needed basis.
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Short-term lines of credit are non-secured which means you do not need to provide physical collateral to secure the loan. The lender assesses the borrower’s ability to repay the loan based on a variety of criteria.
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In a personal line of credit, an individual can draw upon the credit line any time to pay a bill or make a purchase as long as the credit limit is not exceeded.
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Borrowers are typically not charged interest on the unused part of the credit line.
Debt Help Center
A "personal loan" is a financial product that provides consumers with a low amount, short-term cash loan. These loans are typically 2-3 weeks in duration and are not based on the borrower’s credit. Using a simple application, like the one on this website, personal loans provide borrowers with a financial option for quickly acquiring the money they need to cover small unexpected expenses.
Installment loans are very similar to online personal cash loans in that it's a lending product that enables consumers to quickly acquire money needed to pay for immediate, and often, unexpected expenses. However, an installment loan is repaid over time based upon a set number of scheduled payments, instead of one lump sum like a personal cash loan.
Auto title loans, also referred to as car title loans or cash title loans, are a type of secured loan where the borrower can use their vehicle title as collateral. Borrowers must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for the loan.
A line of credit loan is an online cash loan where credit is extended to individuals to be used as needed over a period of time. It uses a debit card to provide the credit, which the consumer uses for purchases.
A line of credit loan is an online cash loan where credit is extended to individuals to be used as needed over a period of time. It uses a debit card to provide the credit, which the consumer uses for purchases.
