What Are The Different Types Of Loans

Question 1

What are the different types of loans?

Answer 1

Credit cards, store cards, personal loans, interest free deals, home loans, payday loans

Question 2

What is credit?

Answer 2

The ability of a consumer to obtain goods or services before payment,based on the trust that payment will be made in the future.

Question 3

What are the advantages of credit?

Answer 3

Credit is convenient

You may save money eg, because you can take advantages of sales

Credit can help if you don’t have money for emergencies because you don’t have to pay on the spot

You can buy things that are needed now when you don’t have enough money to pay for them

Question 4

What are the disadvantages of credit?

Answer 4

Credit usually costs more then paying cash

You may but more then you can afford

When you use credit, you owe money that must be paid back

Question 5

What are interest free deals?

Answer 5

An arrangement between a company and a consumer where the payment is able to be given after a certain period of time with no extra payment

Question 6

What are the advantages of interest free deals?

Answer 6

More time to pay

able to save up money to pay back

Question 7

What are the disadvantages of interest free deals?

Answer 7

Chance of falling debt of a consumer doesn’t pay within the time period, may lose more money in the long run

Question 8

When is credit used?

Answer 8

Credit is borrowed money that you can use to purchase goods and services when you need them.

Question 9

How do you get credit card loan?

Answer 9

You get credit loan from a credit grantor whom they agree to pay the amount you spent.

Question 10

What are personal loans?

Answer 10

When a bank or a person lends money to a consumer for private reason such as medical payment, education or simple money for vacations or other entertainment objects.

Question 11

What are the advantages of personal loans?

Answer 11

Does not require any collateral

Easy access

Apply for a loan online

Can be for variety reasons unlike housing loans which can be for only purchasing household items and transportation

Apply for the loan doesn’t take as much time as the other loan offering

All other loans requires a collateral security except the personal loan

Question 12

What are the disadvantages of personal loans?

Answer 12

Can carry very high interest rates
Insecure in nature
Not easy to obtain
Need to have a good credit rating and history
Many banks and financial institutions do not allow part repayment and results in bigger higher interest

Question 13

What is a payday loan?

Answer 13

A relatively small of money lent a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages.

Question 14

What are the advantages of payday loans.

Answer 14

Good cash advance who can pay them back on time
Hassle free

Fast source of cash in a financial emergency

Question 15

How many hours does it take to get a payday loan?

Answer 15

Will only take only 72 hours on man and is convenient to access. Online lenders are a good source and the option of having payday loan rates comes in handy

Question 16

What happens if you card for payday is broken?

Answer 16

Don’t require a credit report, so if you credit card is broke, or you aren’t able to use it, for you to have a payday man, won’t be affected.

Question 17

What are the disadvantages of payday loans?

Answer 17

Rates range from 10-30% failing to fulfill the repayment on time will consequence in doubling the interest

People in debt are recommend not o use a payday loan

There are for a short period of time so if you need a loan for several months, a payday loan won’t help you

Payday loan only supports small amounts of money

Should read contract carefully as fraud could be possible

Question 18

What is the maximum number of days to pay back for the payday loans?

Answer 18

30 days maximum to pay back the loan with the interest, depending on your repayment plan

Question 19

What is a home loan?

Answer 19

Home loans are a loan advanced to a person to assist in buying a house or flat

Question 20

Why is the home loan advanced?

Answer 20

A loan is advanced to people to assist them when buying houses or flats.

Question 21

What are the home loans secured by?

Answer 21

These loans are secured by property or real estate which is called a mortgage.

Question 22

What are the advances of a home loan?

Answer 22

You don’t have to pay the full price at once

There are family discounts on a wide range of quality products and services

Monthly payments will be significantly lower - it will be useful if you have tight budget

It can allow to buy other essential products instead using a big amount of house such as a house

Question 23

What are the disadvantages of a home loan?

Answer 23

Have to pack back the same amount of money you borrowed

Interest rates go up and down over time

Regretting the decision for example you have to make smart decisions whether to wait for the interest rates to go down or buy the house with high interest rates

You have to keep paying the loan according to how you have the home loan for

Question 24

What are store cards?

Answer 24

A credit card that only be used in one store or chain of stores

Question 25

What are the advantages of store cards?

Answer 25

Discounts- many retailers will provide discounts to store credit card holders on a regular basis

Getting Reward points when you make a purchase with the card you can use the points on different things such as free merchandise or gift certificates

Question 26

What is an advantage if you are regularly customer of one particular store what is the advantages of the store card.

Answer 26

You can free up other credit lines if you are a regularly purchase items from that one store using credit cards, it is easy to clog up your credit line with retail store purchases.