Searching for loans can be difficult, especially since there are various types of loans offered by numerous companies and organizations. Thanks to modern technology, though, it is easier than ever for people to search for the loans that they need via online loan brokers. An example of an online loan broker is Lend Me. Online loan brokers help people find the loans that they need and offer them a one-stop place to compare the numerous loan results generated by their searches. Additionally, online loan brokers can even help guide people through the application processes to getting their loans as well. Regardless of whether people choose to use an online loan broker or not, there are various types of loans that brokers can help them get.
Open-ended loans are credit cards and other types of loans in which borrowers are given a credit limit. They usually come with credit limits that are increased through making purchases and decreased through making payments on their balances.
Close-ended loans are the loans that cannot be borrowed more than one time. Rather, they are one-time loans that are granted to people for a specific purpose. There is no credit limit that increases as payments are made on closed-ended loans. Examples of closed-ended loans include loans for mortgages, student loans and loans for vehicles.
Secured and Unsecured Loans
Secured loans are those that require borrowers to put something like their cars up for collateral. That way the lenders still get their money in the event that the borrowers can’t pay their loans. Rather than getting back for loans in cash, the lenders can then take possession of the assets that served as collateral for them. Unsecured loans, on the other hand, don’t have any sort of collateral put up. They typically rely solely on a borrower’s credit history and income in order for the borrower to qualify for the loan.
Short-term loans are the ones that are designed to help people get through rough patches when they need quick cash for bill or other emergency situation. Examples of short-term loans include payday loans and other types of advances. These types of loans tend to have extremely high annual percentage rates.
The type of loan that a person requires depends upon what the loan is going to be used for. Online loan brokers can help cut down on the searching time that people must do to find the loans that they need.