Which bank loans would be the best for you?

Consumer Installment Loans

A consumer installment loan is used to pay for personal expenses for you and your family.  Auto loans and personal loans are both examples of consumer installment loans.

• Auto Loans are used for buying a car. The car that you purchase with th e loan is used as collateral for the loan.  It's a good idea to know approximately how much you'll need to borrow before you apply for the loan.
  
• Personal loans are unsecured loans that you use for short-term needs, like buying a computer or covering vacation costs.  Unsecured means you don't have collateral on the loan.  Be aware, though, that because there is no collateral on the loan, the loan, is riskier for the bank to make because it has no way of recovering any of the money it loses if you don't repay the loan.  So it may be more difficult to obtain a personal loan.

Credit cards are accounts from which you borrow money to buy things.  Credit card companies bill you for the charges you place on your card each month and each month you must pay back at least a portion of the amount charged.  Credit cards give you an ongoing ability to borrow money for household, family, or other personal expenses.  Remember, having a credit card doesn't mean you have the money to pay for the expense. You do need to have enough money to pay your monthly credit card bill.

Home Loans

Banks offer three different types of home loans; home purchase loans, home refinancing loans, and home equity loans.

• Home Purchase Loans are made for the purpose of buying a house.  Home purchase loans are also called mortgages.  Buying your own home is a great investment.  Not only do you have a residence that is yours for as long as you want it, but you are also eligible for significant tax benefits when you buy a house.  The real estate associated with home ownership often increases with value over time, and can be highly marketable. You can also invest in improvements into your home, from which you gain the benefit.
  
• Home Refinancing Loan is a loan that pays off and replaces your existing home loan. People sometimes refinance their homes when a new loan becomes available at a lower interest rate than their original home loan. Or they may want to get money for home improvements or other personal expenses.
• Home Equity Loans are available for people who own their homes and need to borrow money. The house serves as collateral on the loan. Your home equity is the part of the home that you own outright. It's the difference between your home's appraised value and the amount you still owe on all of your mortgages. Some people call home equity loans “taking cash out of the house” or “borrowing against your home”. Home equity loans generally can be used for any purpose. People sometimes get home equity loans to consolidate debt; to cover emergency expenses; to fund an education; to improve their home; or to buy a car.