What types of loans exist?
If you are considering the idea of asking for a money loan, you may have doubts about what type of financial product you are most interested in. And, at present, we have at our disposal different types of credits and each one is specially indicated for a type of need.
Surely you have heard more than once about fast microcredits, personal loans and, what to say, the well-known mortgages, but you are probably not sure what each of these loans really is and in what situations we can do good use of it.
Below we explain what these types of loans are and we show you which one is the most suitable for each situation.
Fast personal loans or mini loans are loans of a small amount of money (not usually exceeding 800 USD) that must be repaid in a short period of time. A good example is Lite House’s quick mini-credits: they allow you to request up to 750 USD, to return within a maximum period of one month.
One of the main advantages of fast mini-credits is that, with them, you will have the money you need at the moment, because they do not require paperwork or endorsements of any kind and you can request them from anywhere, through your smartphone or tablet.
You just need to fill out a simple online form from the Lite House website and wait a few minutes to receive your personalized proposal.
What can be paid with a quick mini-loan?
An unexpected bill, the repair of a breakdown, a traffic ticket, a training course, a mobile, a new appliance, a getaway, a camera, a little fad…
Personal loans are credits of a not too high amount (usually not exceeding 5,000 USD ) that are usually repaid over a period of up to 24 months. They are very easy to request and do not require guarantees or payment guarantees.
They are often used to finance specific personal needs, although they are also a very useful tool for entrepreneurs and small and medium-sized entrepreneurs who need an economic boost to start their projects.
What can be paid with a personal loan?
A vacation, a reform at home or in a small business, a dental treatment, a university registration, a motorcycle, a master’s or a postgraduate degree, a wedding…
A mortgage is a loan of a high amount of money that takes a good (often a home or a local) as collateral. If the borrowed money is not returned, the entity would become the new owner of that asset.
Unlike the quick mini-loan and personal loan, the mortgage loan is a complex product, with a significant number of technical aspects – both financial and legal – that you should know and consider before signing.
You should not forget that it is a long-term loan, with which you commit something as important as your home, your business, your vehicle or any other good that you have offered as a guarantee of payment.
What can be paid with a mortgage?
A house, a car, the place to start a new business…