Types on Loans

collateral

An asset that a bank hold as security for the repayment of a loan

Closed-ended loans

Cannot be borrowed once they've been repaid. Common types of closed-ended loans include mortgage loans, auto loans, and student loans.

mortgage loans, auto loans, and student loans. are example of which type of loan

Closed-ended loans

How to build a credit History "Score"

Make payments on time,Good Job history,Open a Savings account and make regular deposits.

Credit cards and lines of credit are example of which type of loan

Open-ended loans

Certain types of loans should be avoided

Payday loans

Secured loans

are loans that rely on an asset as collateral for the loan.Interests rates for secured loans may be lower . Examples Car Loan, house.

Open-ended loans

are loans that you can borrow over and over. Credit cards and lines of credit are the most common types of open-ended loans

Conventional Loans

are mortgage loans

Payday loans

are short-term loans borrowed using your next paycheck as guarantee for the loan. Payday loans have notoriously high annual percentage rates (APRs) and can be difficult to pay off

Unsecured loans

don't have asset for collateral. These loans may be more difficult to get and have higher interest rates.