Are you curious about the different types of loans available in the US? If so, it’s unsurprising, as many Americans have loans of some capacity for various reasons. It’s only natural to learn more information about the financial aid available to you as a citizen. Perhaps you need a bridge between credit card bills, help to get a car or a home, or you’re paying off your education.
In this guide, we discuss loans in a handful of ways, so you know what options you have. Sit down and get ready for class!
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1. Auto Loans
An astounding 44% of Americans use car loans to finance their vehicles. In 2017, car loans amounted to $108.66 million, or 9% of the US’ collective debt!
So, if you need or want a car loan, it’s safe to say you’re not alone.
Car loan costs vary depending on age, location, type of vehicle, driver record, and more. One thing’s for sure, though—many people can get them regardless of their good, bad, or even nonexistent credit. This site has more information on no-credit-check loans if that’s something you need.
2. Student Loans
Student loans have been a regular conversation in America for a long time, especially now as the number of student loans has reached a record high.
The current student loan debt in 2020 sits at $1.56 trillion. This number affects those of a variety of age groups and demographics. Student loan debt is so typical, in fact, that it’s the second-highest in the consumer debt category, coming only after mortgage loans.
3. Home Loans
Home loans, also known as mortgages, are another incredibly standard loan in the US. According to recent reports, about 60% of homes in America are under a mortgage contract. But that’s also great news!
That means that about 40% of homes are clear of mortgages. This positive number shows that paying off mortgage debts can be accomplished with time and responsibility.
4. Personal Loans
Personal loans are just as the title suggests: personal. There’s no designated place where that money has to go, as the loans above suggest. Instead, personal loans can be for several things, depending on your needs.
Another difference between personal loans and the other types of loans listed, personal loans are “unsecured.” That means there’s no collateral (i.e., a car or home) that’s involved, making it “secure.” Because of this, those interested in personal loans can expect to pay a higher interest rate.
There are options for “secured” personal loans, if need be, which can help you lower those higher interest rates.
These Different Types of Loans Are an Option for You
When it comes to borrowing money, you have choices. If you’re in a bind, are trying to get through school, or need helping planning for your future—buying a car, buying a home—there are several different types of loans available for you.
Regardless of the type you get, it’s imperative to have a set repayment schedule that you can stick to. Loans should be paid off promptly to avoid debt, missed payments, or high-interest fees.
If you need more tips, tricks, and advice like this, keep scrolling our page to see what we have!