What are the six common types of loans? This question is about Types of Loans

What are the six common types of loans?

This question is about Types of Loans

Grace Enfield, Content Writer

@grace_enfield • 04/18/23 This answer was first published on 01/28/22 and it was last updated on 04/18/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Six common types of loans include personal loans, auto loans, home equity loans, mortgages and more. Each of these loans is used for a different purpose and has different loan amounts, APRs, payoff periods and fees. But one thing most loan types have in common is that the borrower gets a lump sum of money up front and pays it off over time.

Six Common Types of Loans

Along with having different terms, each of these common loan types has different requirements regarding collateral, credit scores, income and more.

What are the easiest loans to get approved for?

The easiest loans to get approved for are payday loans, pawnshop loans, car title loans, and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they’re available to people with bad credit. They’re also very expensive in most cases.

Below, you can compare some of the easiest loans to get approved for right now.

Easy Loans to Get Approved For

OppLoans: No credit check (160% - 160% APR).
...

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What are the different types of installment loans?

The main types of installment loans are personal loans, mortgages, home equity loans, car loans, student loans and credit-builder loans. Each type of installment loan has different requirements, APRs, fees, payoff periods, and amounts of funding. Some are also used for specific purposes.

Types of Installment Loans

Personal loans

Personal loans are installment loans that can be used for nearly anything. They typically range from $1,000 to $100,000, with payoff periods of 12 to 84+ months,...

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Which is better, a home equity loan or a personal loan?

The biggest difference between a home equity loan and a personal loan is that a home equity loan is secured by a house while a personal loan has no collateral in most cases. Home equity loans and personal loans also differ in terms of their repayment period, interest rates and the amount available to borrow. A home equity loan’s repayment period lasts 5 - 30 years, according to Experian, while a personal loan usually lasts...

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