More About the Best Consumer Loans – Beste Forbrukslån


Consumer loans are for everyone and for every reason under the sun that you can think of. The loans that most people think of when they think of consumer loans are mortgages, which are home loans, vehicle loans, and personal loans.

To get a good loan, you will need a good credit history, and to get a good credit history, you need good credit. To get good credit, you can take out credit builder loans and then pay them off as soon as you can. Make the monthly payments on time each month and in full and soon you will be building your credit.

You can find loans all over the internet and at brick and mortar buildings, lenders can help people with all types of credit history. If you want the beste, or best, consumer loan, you will want to make sure that do your research. Look for online reviews to see how others faired with lenders you might want to do business with.

Types of Consumer Credit

More About the Best Consumer Loans – Beste Forbrukslån

1. Closed End

This type of loan has a specific amount that you borrow, with regular monthly payments that are the same, with a specific amount of time. Auto loans and home mortgages are two type of closed end credit that most people know about.

You will sign an agreement to pay the monthly amount for the specific amount of time. You will also agree to an interest rate that goes along with the loan – this is the amount of money the lender will charge you to borrow their money.

2. Open End

This type of loan does not have a specific amount that you borrow, monthly payments can be different due to the items that you use the credit for, and there is no specified ending date for paying off the bill. This is also called revolving credit and the most common examples of that are credit cards, store issued cards, and overdraft protection.

You might be given a top limit to the credit card, but you can pay off small payments each month, or you can pay the balance off each month. If you pay the balance in full each month, some credit cards won’t charge you interest – they give you a grace period in which to make your payments.

3. Secured Loans

Secured loans have some sort of collateral that you put up for the loan – for example, a car loan is a secured loan because you will use the car as the security or collateral for the loan. If you don’t pay the loan off, the lender can repossess your car and then sell it to recoup the money they lost.

Secured loans can have many things of value to secure the loan – homes, cars, jewelry, weapons, and tools are the most common things that are used as security.

4. Non-Secured Loans

This type of loan does not require any security and is usually for things like credit cards or personal loans where there is no collateral. If you have a good credit history and credit score, you are more likely to get a non-secured loan with lower interest rates.

If your credit isn’t as good as you want it, you might still be able to get this type of loan, but your interest rates will probably be higher.

5. Cosigner Loans

Sometimes you just can’t get a loan on your own, either because you haven’t had loans before or because you have failed to pay your previous loans on time. In this case, you can get a cosigner to sign your loan for you and to guarantee that you will pay.

The worst thing about the cosigner loan is that if you fail to pay your loan, your cosigner will have to pay or forfeit their good credit. If you have a cosigner, make sure that you don’t harm their history and that you pay your monthly payments on time. Here is some information about being a cosigner.

If you are planning to cosign for a friend or family member, make sure that you know what you’re getting into.

6. Commercial Bank Loans

This is where most people will go when they want to borrow money. Commercial banks are the ones that have brick and mortar buildings that you can go to.

Most of these places also have online sites that you can apply to before you go in to sign papers. They will also have people that you can talk to and not just chat with online or on the phone.

7. Savings and Loans

These lenders are also brick and mortar buildings for the most part and you can save money there or borrow money from them. In the past, these lenders would only do long term loans such as for automobiles or homes, but now they do short term loans, as well.

Sometimes they require some sort of collateral, but other times they don’t, depending on your credit scores. They tend to lend to those with excellent credit history and credit scores, so this might not be your first stop if you have bad credit.

8. Credit Unions

These lenders require you to be a member of their organization and require a small fee for this. If you are part of a credit union, you are a member of a group such as factory workers or teachers.

There are credit unions for most forms of employment so you can join one – there are other credit unions that don’t require you to be a part of a specific group, they just require you to pay the membership fee.

9. Consumer Finance Companies

This type of lender usually specializes in personal loans and second mortgages for people who need them.

If you don’t have a bank or credit union and your credit isn’t very good, you could go to a consumer finance company, and they will be able to help you in most cases.

Because you are a higher risk, you will be asked to pay a higher interest rate and you may have other fees that you need to pay, as well.


There are many types of loans and lenders in the world today and they can fit just about any person and need.

If you have excellent credit, you are more likely to get a loan, but even those with horrible credit can get the loans they need if they are persistent enough. You might have to pay higher fees, but there are loans for everyone.

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Author: Matt Ledesma