What is the most common type of loan? This question is about Types of Loans

What is the most common type of loan?

This question is about Types of Loans

Grace Enfield, Content Writer

@grace_enfield • 01/28/22 This answer was first published on 01/28/22. 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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The most common type of loan is an installment loan, which is a one-time lump sum of money that the borrower has to pay off in equal portions at regular intervals - typically monthly. Some examples of an installment loan include personal loans, car loans and mortgages. Some installment loans can be used for one specific purpose, while others can be used for almost anything.

Pros and Cons of Installment Loans

Pros	Cons
Pay off big purchases over time	Only allow you to borrow one time
Consistent monthly payments	May require collateral
Can be paid off early, often with no penalty	May charge fees, such as origination fees or late payment fees

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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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