What types of loans are there?

There are a few common types of loans everybody knows about that are even supported by our federal government in the form of insuring these loans. However, there are other types of loans that can be used to get yourself afloat while you settle your debts or find a job. Having a good credit score in your credit report will help you get a better deal with any loan, but most types can be obtained with bad credit too. I will share a few types of loans with you:

Car loans

Car loans are one of the type of loans that most people know about but they do not know the different types of car loans. In general, you can get a loan from either a bank/credit union or from the car dealer itself. Whichever loan you get is up to you but you should check the car dealership's honesty in giving out loans in the past, and also make sure that they do not have any hidden clauses in the contract.

Business loans

Let's imagine for a minute or two that you want to start a blog with Infolinks or INTENTclick advertising so that you can work from home. You want to host the site yourself, so you need to buy a server. And you also need to run an AdSense campaign so that people can find your site. If you do not have the money to do all these things, it is possible that you can get a small business start up loan from a bank or a credit union.

Home loans

Unlike car loans where the dealer and the bank can issue loans, only banks issue home loans. You cannot get one from the company that built the house. That is why Pulte in the United States, a home builder, does not foreclose on the homes that it builds when its owners fail to pay.

Personal loans

Maybe you need to buy some nice things, or pay for your daughter's wedding. Though more and more families are splitting the cost, it is still tradition (leftover from the days of dowries) for the wife's family to pay for the wedding. If you have an unexpected wedding for your child that you cannot afford, or have another big expense, you can take out a personal loan so that you can pay for things. Sometimes the rates are so low that you are barely paying back more than inflation.

About the author: Murray Newlands is the CEO and Founder of Influence People.