The Different Types of Loans
Do you know all the different types of loans out there? Do you even know the most common ones? And most importantly, do you know what they mean? Realistically, you probably don’t, but that doesn’t mean you don’t need too. Especially if you are wanting a loan, you should know everything about them, not just the basics.
A loan is a sum of money which is lent to another party. It is then repaid in the future along with interest or any other financial charges. They tend to be repaid in smaller monthly instalments to allow people to repay with as little stress and worry as possible.
What are the different types of loans?
A loan is any financial assistance that you receive from a professional lender with the agreement that you’ll pay it back, typically with interest. There are numerous types of loans, but do you know what the most common ones are? Read below to find out:
Payday Loans
These are loans which are repaid from your next wage. Hence the name, ‘payday loan’. These typically have a higher APR because of the shorter length of lending. With BingoLoans, you can borrow £50 – £1,500 to help you get through the month if you are struggling due to an emergency. People tend to borrow payday loans due to unexpected problems like a car breakdown.
Short Term Loans
Short term loans are small loans which are borrowed for under a year. They are similar to payday loans but they can be paid back over multiple months instead of just one like a payday loan. You can borrow between £100 – £1,500 with a short term loan and repay it for upto 12 months. This is to give you plenty of time for a stress-free experience.
Online Loans
Though the loans above are offered online, some lenders and brokers still require you to participate in things like interviews, phone calls or even things like you going to the post office to post an application/communication letters. So, online loans from lenders and broker like us here at BingoLoans offer a great solution to these more traditional loans.
Cash Loans
To simplify the definition, cash loans can be defined as small loans taken to cater for emergency cash needs. This could be for things including car repairs, a new boiler or even unexpected bills. Here at BingoLoans, we can help you with a quick cash boost. Once you have applied for one of our cash loans, if approved you might have the loan amount paid into your bank account with a couple of hours.
Debt Consolidation Loans
A debt consolidation loan allows you to squeeze all of your debts into one big one. It is where an individual takes out one loan to pay off several all together. Consolidating these different loans into one means there is only one monthly repayment to make, instead of several. This is so you can just focus on one instead of multiple as we know that might get a little confusing at times.
Emergency Loans
Our fast emergency loans can even be with you the same day, even within a few hours. This is perfect, especially if you are borrowing due to struggling with a financial emergency. The last thing you want in this case is to be waiting days, if not weeks for a loan. So, here at BingoLoans, we don’t only give you a loan in a few hours, but we also give a fast application form. This is so you don’t have to spend time getting unnecessary information and filling in a form which will cause you even more stress.
Fast Loans
Our application form and website is the up-to-date, modern and fast working meaning you will have your loan in no time if accepted! Fast loans are short term loans which can be applied for and approved in no time. That’s why this specific loan is perfect for unexpected emergencies.
Flexible Loans
As a lender and a broker, we want the best for you all. Unlike most lenders, we take extra consideration when accepting or declining applications because the last thing we want to do is place somebody in a worse position than they’re already in. This means that we’re now giving you the power with our flexible loans. So, now you can repay them as and when you can. This is to keep you as financially stable as possible.
Small Loans
Payday loans and short term loans all tend to be small, some lenders might offer a range of £200 to £2000, but we feel it is best if we start our loans lower and finish them lower. So, our range is £50 to £1500. We understand that not everyone wants to take a loan of £200 out when they only need £50. So, this is why we choose to stand out and offer you loans starting at a lower amount.
No Guarantor Loans
No guarantor loans are loans that don’t require you to find someone to co-sign or guarantee the repayment of the loan. As a lender and a broker, we put all of our trust in you to repay on time. But, you should be aware that there are consequences to late repayments. They can cause very serious money problems, for more information visit the Money Advice Service.