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Types of Loans Available
Types of Loans Available
Through our site, you can connect with professional lenders who offer a variety of borrowing products, including payday loans, title loans, personal loans, and cash advances. Most of our lending affiliates offer most if not all of these options, so you will need to decide which product is the best fit for your needs. Each of these products differs in term duration, total cost, risk tolerance, and loan security. In making your decision, you should consider how the various loans measure up according to each criterion to guide your selection. Below, we've summarized for you how the products compare in four categories.
Payday Loans
Term
2-4 Weeks
Cost
High
Credit Types Accepted
All
Secured/Unsecured
Unsecured
Title Loans
Term
Variable
Cost
Medium
Credit Types Accepted
All
Secured/Unsecured
Secured
Cash Advances
Term
Variable
Cost
High
Credit Types Accepted
Good - Excellent
Secured/Unsecured
Unsecured
Personal Loans
Term
6 months - 1 year
Cost
Low and High
Credit Types Accepted
Good - Excellent
Secured/Unsecured
Both
Loan Duration
The duration of a loan is known as its term, or how long the borrower has to repay the loan before it becomes past due. With traditional lending products, loans are classified as short term if they have a duration of less than five years. The products our lending affiliates offer are alternatives to the standard loan, however, and operate slightly differently. In this type of lending, short term loans are typically defined as having terms of less than a year. In fact, a short term loan may have a duration as brief as two weeks, as may be the case with payday loans or title loans. While the term of your loan will depend on your lender, we've ranked the following loans by average duration from shortest to longest below.
- Payday loans
Average term of 2-4 weeks in most cases - Title loans
Depending on the amount borrowed, average term may range from several weeks to over a month - Cash advances
A credit card cash advance can be carried for as long as the borrower desires as long as minimum payments are made, but it is not financially advisable to do so for more than a month or so - Personal loans
Personal loans have the most flexibility with regard to extended terms, with most lenders setting their duration between six months and one year
Overall Cost
The total cost of borrowing can vary tremendously among different loan types. If you are looking for cheap loans, you will likely need to make concessions in other areas, such as representing less of a risk to the lender or being willing to put up collateral against the loan. A cheap loan typically has both a low interest rate and minimal fees. Keep in mind, though, that how affordable the loan is will be defined relative to other loans of the same kind. Below, we've ranked the following products from the cheapest loans to the most expensive, on average.
- Personal loans
Because these loans are influenced by your credit score, they tend to be cheaper than loans that do not require a credit check in order to qualify. Cheap personal loans will have affordable interest rates and minimal or no fees, assuming your credit is up to par. - Title loans
Anytime a lender secures a loan against a piece of property, less risk is involved, thereby allowing the lender to charge lower interest rates than it otherwise would. Title loans are secured against your vehicle, which usually means they have relatively more affordable borrowing costs. - Payday loans
Payday lenders take more of a risk than the lenders of the aforementioned loans because these loans are unsecured. Cheap payday loans are not impossible to come by, but you can expect relatively higher interest rates and fees. - Cash advances
Credit card cash advances are the least appealing option if you want a cheap loan. Credit card companies commonly charge exorbitant APRs for cash advances, and they also charge steep fees based on how much money you withdraw.
Borrower Risk Level
Every borrower represents a certain level of risk to a lender based on his/her financial history and the type and amount of loan desired. Usually, title and payday loans fall into the category of high risk loans because these products do not require a credit check and are thus accessible to almost anyone regardless of credit score. Of course, the higher risk a loan is, the more you will typically pay for it. On the other hand, if lenders classify you as a low risk borrower, you might be better of opting for a personal loan or cash advance. Low risk loans tend to require a credit check, and if you qualify, will provide better interest rates as a result. We've ranked the following loans according to their suitability for high risk borrowers from best to worst.
- Title loans
One way to combat the risk you represent to a lender is to offer collateral to secure the loan, which is precisely what a title loan does. A title loan is considered a high risk loan because almost any borrower can qualify regardless of financial standing provided he/she has a clean title to a vehicle. - Payday loans
Payday products are considered high risk loans because virtually any borrower with a steady income and a bank account can qualify. These loans are not secured, though, so extremely high risk borrowers may not qualify with certain lenders. - Personal loans
These are the least high risk loans of all four because they are also credit-dependent. The lender will run a credit check on applicants and will likely turn away high risk borrowers. - Cash advances
The cash advances we refer to here are attached to a credit card of some kind, and credit cards are normally reserved for low risk borrowers. A certain credit score is necessary in order to qualify for a credit card with a cash advance option.
Secured vs. Unsecured Loans
A secured loan, as previously discussed, is attached to, or secured by, a piece of real property, such as a home, a vehicle, etc. Secured loans tend to have lower interest rates because the lender has the option of seizing the collateral property if you default on the payments. By contrast, unsecured loans are not associated with any property, meaning they present an extra level of risk to the lender and thus are more expensive. We've classified the four types of products our affiliates offer as unsecured or secured below.
- Payday loans
Unsecured - Cash advances
Unsecured - Title loans
Secured against the title to your car - Personal loans
May be either secured or unsecured depending on your lender
Available Loan Products
Personal Loans
Larger loans (more than $1,500) with flexible payment options for individuals with good-to-great credit.
- Competitive interest rates
- Loans up to $10,000
- Flexible repayment schedule
- Requires a credit check
Paycheck / Payday Loans & Advances
Small-to-medium sized loans collateralized against a future paycheck issued without a credit check.
- Loans range from $300 to $1,500
- No credit check required
- No faxing in most cases
- Loans often deposited within 24-48 hours
Cash Advance & Cash Loans
Emergency cash loans to cover specific, unexpected expenses such as utility payments or medical bills.
- Checking account required
- Money loans with short-term payback options
- Alternative loans for people with bad credit
- Secure, confidential online processing
Title Loans
Similar to secured personal loans, title loans are collateralized against an asset (your vehicle) to help guarantee payment.
- Use an asset, typically your truck or car title, to qualify
- Loans up to 100% the value of your vehicle
- Use for any financial need
- Flexible repayment terms
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