At some point in your lifetime, you are going to need to borrow money. It may be to purchase a vehicle, a home, or even furniture. Whatever the purchase may be and whenever it may occur, you should be aware of the various loans that are available.

Car Loan

As the name suggests, you can borrow money to purchase a car or truck. You can obtain this type of loan from a bank, a credit union, and even from a car dealer. Car loans are secured by the car, of course, and typically are for terms of a few years.

Mortgage

A mortgage loan is used to purchase property. When you do not have the money to buy a residential or commercial property, you can arrange for a mortgage through a financial institution, usually a bank. The Mortgage loans have longer terms, normally between 15 and 30 years.

Home Equity Loan

If you own a home and have equity in it, you can access some of that equity with a loan. Oftentimes, homeowners will use a home equity loan to pay for home remodeling, college expenses for their kids, or other large purchases.

Personal Loan

You can always visit your bank or credit union and apply for a personal loan. Maybe you need a few thousand dollars to pay for expenses while you attend graduate school. If you are in good standing and have a good relationship with your lender, you may be granted this type of loan with just a signature. Personal loans are usually short-term loans (a year or less).

Payday Loan

A payday loan is one that can be obtained by anyone that has a job. If you need cash quickly, you can use your next paycheck as collateral. A payday loan can usually be granted within an hour. Payday loans are usually two-week loans and can rollover if not paid off.

Car Title Loan

For those who have poor credit but own a vehicle, there is the opportunity to take out a car title loan. Embassy Loans, a title loan company in Florida, processes thousands of car title loans each year. A person fills out an application to start the process. The title to the vehicle must be free of liens. The title is what secures the loan. There are no credit checks with an auto title loan which makes processing go pretty quickly. Embassy Loans usually processes a title loan in an hour which allows borrowers to get their money quickly.