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What are the different types of loans?
#1
I have been doing a little research so that I may understand loans a bit more. I decided to look up more information on a signature loan. The signature is a type of personal loan that some banks or finance companies use accepting the clients signature and promise to pay as collateral. Obviously this will be based upon the fact if the client meets the requirements to provide the loan. In most cases I am sure this will be based on your credit and job history. I did read further in the information saying once paid it would be considered closed and if wanted more money the client would have to apply for another loan. Maybe it would be better being the fact the to get the loan, it is based on credit and work history so is a line of credit that can reoccurring and build in the amount of money you can borrow if you follow and meet the guidelines in repayment. I wonder would a line of credit (credit card) would be a better direction to go than a loan? Then I wonder would that decision be based upon the amount you need and can actually get from one or the other at that point in time?
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#2
I believe there are several type of loans. First is the consumer loan, it is a installment based loan and are used as a loan to purchase consumer product like electronic goods, household furniture and other hardware. Second is the cash loan, it is basically a cash that you can borrow for your own personal reason and sometimes comes with higher interest rates. Third is the payday loan, it is a type of a loan which a lender uses his next paycheck as a guaranteed payment for his loan. Fourth is the advance fee loan which commonly used by scams and cheaters. This people will ask you money for some sort of administration or application fee in order to process the loan. This is a type of a loan that you need to watch for. Fifth is the secured loan, secured loan are loans where the lender uses an asset of your as security, which known as a collateral for the loan. In the event that you aren't able to repay your loan, the lender has the right to take possession of you asset to use it to cover your unpaid loan. Sixth is the unsecured loan, An unsecured loan is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. Borrowers generally must have high credit ratings to be approved for certain unsecured loans. If you are not able to pay an unsecured loan, the lender may use depth collectors and legal routes to recover the loan.
So that basically it. For me having a loan is good if you used that money properly, it will only become bad if you used the loaned money for useless things.
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#3
Thanks for this information on signature loans. I wasn't sure what it was, although I have heard the term before. It seems like it might be a good alternative to some of the other types of loans that are available. As long as you have a decent job and credit history it might be something helpful for you
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#4
(01-07-2018, 05:57 PM)kgord Wrote: Thanks for this information on signature loans. I wasn't sure what it was, although I have heard the term before. It seems like it might be a good alternative to some of the other types of loans that are available. As long as you have a decent job and credit history it might be something helpful for you

Thank you and I agree that it maybe a better as well as safe loan. I found the information by communicating on another forum about loans as well a just doing a little research myself. I think these have some interesting forums where one may support or have info discrediting the other.
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#5
I have never looked into the signature loan before but I might want to do a little research on it. It seems like it might be something that I would really benefit from and be able to use in the future. I would feel a bit more comfortable with something like that than a home equity loan that could put your home at risk.
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#6
The good thing about signature loans is that their interest rate have generally decreased over the years. I've heard of people getting a signature loan to pay off their credit card debt. Many times the loan's interest rate is lower than the interest rate of you credit debt, so this way people save money. It's a good deal. However if you want to apply for a personal loan, the bank will do check your credit history and if it's bad, they will most probably give you a loan with not very low interest rate.
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#7
Loans are helpful for a lot of people even in companies. It is good that you took time to summarize and differentiate the types of Loans. Loans maybe helpful but you will need to be more responsible of it and should not be taken for granted. You need to thouroughly think in consideration every factor in getting a loan since its not a joke to borrow some money, if its not that much needed just avoid it.
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#8
Loans are useful for many individuals even in organizations. It is great that you took time to summarize and differentiate the types of Loans. Loans can possibly help yet you should be more capable of it and you should be more careful. You have to think in through each factor in getting a loan since its not a joke to borrow some cash, if it isn't so much that necessary simply stay away from it. And don't get carried away or make a hobby in borrowing cash. Just my opinion, the decision is yours.
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#9
Here in Philippines the most popular loan is 5/6 where can you loan 500 pesos and you pay your loan it became 600 that's why we called it 5/6 or in your country $5 became $6 when you paid your loans.
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#10
(01-06-2018, 11:44 PM)carolinasky Wrote: I have been doing a little research so that I may understand loans a bit more. I decided to look up more information on a signature loan. The signature is a type of personal loan that some banks or finance companies use accepting the clients signature and promise to pay as collateral. Obviously this will be based upon the fact if the client meets the requirements to provide the loan. In most cases I am sure this will be based on your credit and job history. I did read further in the information saying once paid it would be considered closed and if wanted more money the client would have to apply for another loan. Maybe it would be better being the fact the to get the loan, it is based on credit and work history so is a line of credit that can reoccurring and build in the amount of money you can borrow if you follow and meet the guidelines in repayment. I wonder would a line of credit (credit card) would be a better direction to go than a loan? Then I wonder would that decision be based upon the amount you need and can actually get from one or the other at that point in time?

There are many types of loan but I prefer cash advance loan, which is your salary is advance and when the payday come you don't have salary, because your salary was given to you in advance. 

I only use this kind of loan if I have an emergency at very moment or if I don't have any choice or I need money.
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