A Look At The Different Loans You Can AvailFast Action Finance
Loans become a necessary part of living when the going gets tough and you have no more positive finances to get you through. While the thought can be daunting what with so many stories about people being unable to repay their debts, loans sometimes serve as the only way to get you out of a fix.
There are several types of loans one can avail, though most, if not all, require that a borrower has a good credit history and can show proof of continued income. Here’s a look at some of the common ones:
â€˘ Secured/collateral loans: Secured loans are those that require collateral from the borrower. Lenders will usually appraise the asset to see if it is worth issuing a loan against these assets.
â€˘ Unsecured loans: Unsecured loans are the opposite of secured loans in that they donâ€™t require collateral. Instead, the lender relies on the borrowerâ€™s credit history and income. If the loan cannot be cleared, the lender may slap a lawsuit or use debt collectors as collection options.
â€˘ Open-ended loans: Open-ended loans can be borrowed many times over and the amount used is debited against the credit. As the loan continues to be utilized, the credit decreases.
â€˘ Close-ended loans: Close-ended loans cannot be borrowed once theyâ€™ve been cleared. Instead, a fresh loan must be applied for. Examples include auto loans and mortgage loans.