Types of Loans and Credit

Used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.

• Installment Loans

• Personal Loans

• Credit Cards

• Payday Loans

An open line of credit that can be used for any purchases as long as you’re under the credit limit. Payment amounts vary each pay period based on the size of the debt.

• Revolving Credit

• Installment Loan

• Secured Credit

• Unsecured Debt

Debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn’t make payments.

• Secured Debt

• Unsecured Debt

• Revolving Credit

• Installment Loan

Debt is not tied to a specific asset; there is no collateral that can be repossessed if borrower defaults.

• Secured Debt

• Unsecured Debt

• Revolving Credit

• Installment Loan

Interest rate can change during the duration of the loan based on the prime rate or an index rate.

• Fixed-Rate

• Variable-Rate

• Adjustable-Rate

• Stable-Rate

Interest rate remains constant during the duration of the loan.

• Fixed-Rate

• Variable-Rate

• Adjustable-Rate

• Subprime-Rate