If you’re in a situation where you need to borrow from a lender, it’s important to understand the different types of loans so you can determine which loan will suit your needs. There are several different types of loans, such as unsecured personal loans, secured personal loans, fixed-rate loans, debt consolidation loans, payday loans, payday alternative loans, and more. At MaxLend, we offer an alternative solution to payday loans that can be paid back in installments. We’ll cover some of these different types of loans to help you better understand what kinds of loans are available and which may work for you.
Unsecured Loans
To determine how much you can borrow, lenders who offer unsecured loans may use your credit score or other factors as a reference. People with good credit may end up with a lower interest rate than those with bad credit. However, some people with bad credit can still get unsecured money loans.
Secured Loans
With a secured loan, also known as a collateral loan, you’re required to offer some type of collateral to secure your loan. When you use collateral to take out a loan, you’re running the risk of losing the property you’ve offered as collateral.
Payday Loans
Payday loans are loans that are typically due in full with interest by your next payday. These cash loans are to be repaid to the lender once you get paid from your job.
Payday Alternative Loans – Installment Loans
One option for an alternative to a payday loan is a short-term installment loan. Installment loans may be more feasible compared to traditional payday loans, as you can get a longer repayment timeline with a payday alternative loan. Unlike an installment loan, a traditional payday loan typically must be repaid with interest on your next pay date.
Debt Consolidation Loans
You can use unsecured personal loans to help consolidate debt. To consolidate debt with a personal loan, you can apply for a loan in the amount that you owe, use the loan to pay off your debts, and ultimately pay off the loan.
Fixed-Rate loans
Most personal loans come with fixed interest rates, meaning that the interest rate and the repayment rate will stay steady over time. These predictable payments make it easier to know and understand how much you owe on your loan each month during your repayment. Loans with a fixed rate may be easier to incorporate into a budget.
If you’ve found that you need emergency funding, you can count on MaxLend to help. You can apply for cash online and find out if you’re approved for an installment loan of up to $3,750. For more information about obtaining cash loans online, contact us at MaxLend by calling 877-936-4336.
If you haven’t taken a loan with MaxLend yet, what are you waiting for? You can read honest feedback on our Trustpilot review page from other borrowers, like you, who have already taken a loan with us.