Holicent
VIP Contributor
There are many different types of personal loans available, but they all have one thing in common: it's a loan that's used to help you improve your personal finances.
Types of Personal Loans
1. Interest-only loans - These are often referred to as "cash-back" or "balance transfer" loans because the interest rate is based on the amount of the principal balance and not the amount of the outstanding loan. The borrower pays no interest while they pay off their balance, which means they can get a higher payoff than with an amortizing loan. The downside is you have to pay more on this type of loan than with an amortizing loan, which can make it hard to afford if you have more debt than cash saved up for a down payment on a house or other major purchase.
2. Upfront and deferred payments - These are usually referred to as "pure cash-back" or "pure financing" because there are no other fees or charges associated with these types of loans. Typically, these types of loans require that you pay back your entire balance at once (usually within 60 days after closing).
Types of Personal Loans
1. Interest-only loans - These are often referred to as "cash-back" or "balance transfer" loans because the interest rate is based on the amount of the principal balance and not the amount of the outstanding loan. The borrower pays no interest while they pay off their balance, which means they can get a higher payoff than with an amortizing loan. The downside is you have to pay more on this type of loan than with an amortizing loan, which can make it hard to afford if you have more debt than cash saved up for a down payment on a house or other major purchase.
2. Upfront and deferred payments - These are usually referred to as "pure cash-back" or "pure financing" because there are no other fees or charges associated with these types of loans. Typically, these types of loans require that you pay back your entire balance at once (usually within 60 days after closing).