Guide to the Most Popular Types of Loans

Loan Application

It is very likely that in most Americans’ lifetime they will need to utilize some form of loan service. When it comes to borrowing money, there are a lot of options out there that pertain to specific circumstances. Below you will find a breakdown of the most popular loans.

Student Loans

When it comes to a student loan, you have the choice of getting a federal student loan or a private student loan. Student loans are limited to college students or their families to help cover the cost of tuition and other expenses. In most cases, it is usually better to take out a federal student loan, as they typically have lower interest rates and better repayment terms. For more information on applying for a federal or private student loan, click here.

Mortgages

In the market to buy a home? A mortgage is the type of loan for you. A mortgage is a legal agreement where a bank or other creditor loans money at interest in exchange for taking title of the debtor’s home or property. The mortgage is tied to your home, so if you fall behind on payments, the bank or credit lender can take the house or property. There are many forms of mortgages but the most popular is the fixed 15/30-year loan. With this loan, you will have the house completely paid off in 15 or 30 years and the interest rate will never go up or down no matter what the market does.

Auto Loans

Unless you can pay the full price for a car upfront, you are probably going to take out an auto loan when purchasing a new vehicle. In this case an auto dealer or bank provides the finances. Based on your credit score and the lender you could potentially pay zero percent interest with this type of loan. These loans typically last between 2 and 6 years.

Small Business Loans

Small business loans are usually given out to startup businesses or entrepreneurs to help finance the opening or expanding of a business. The U.S. Small Business Administration (SBA) is the best source for small business loans. They offer different options depending on the type of expenses and business needs. For more information on a small business loan and how to apply for one click here.

Payday Loans

A Payday Loan is a set amount of money, usually a smaller amount, that is borrowed with an agreed upon repayment date falling on the borrower’s next payday. Not only is the full amount required to be paid in full on the next Payday, but all interest that was acquired as well. In most cases when taking out a Payday Loan, you will know the exact amount that will need to be paid back- total amount borrowed + interest that will accrue.

Flex Loan

Different from a Payday Loan or an Installment Loan, a FLEX Loan allows you the opportunity to apply only one time yet withdraw cash any time you need it (up to your credit limit). And unlike a payday loan or installment loan, when using a FLEX Loan, you pay back the loan at your own pace, with payments, or installments, that coordinate with your payday. With an Advance Financial FLEX Loan, you can get approved for up to $4,000. Our FLEX Loans are available both online or at any one of our 24/7 locations all over Tennessee. Click here to apply.

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