Forms of Loans and personal lines of credit
There are plenty of forms of loans and personal lines of credit: mortgages, charge cards, HELOCs, figuratively speaking, plus much more. Each of them end up in 1 of 2 groups: secured and credit card debt.
Secured personal loans and personal lines of credit
Secured finance and personal lines of credit are “secured” since they are supported by some underlying asset like a home or an automobile. The lender gets to keep the asset if you can’t pay back the loan or default. Because of this, these kinds of loans and personal lines of credit are apt to have reduced danger for the lending company and lower rates of interest.
Common kinds of secured finance and personal lines of credit include: mortgages, HELOCs, auto and car loans, and investment loans and margin. Continue reading