What is the difference between sms and fast loans? No one at all, but what is the difference between an online credit and an account credit? Or on a credit card and debit card? Or on down payment loans and loans for the cash deposit? Not everyone knows this, so why should Good Finance give you this little guide on various loans and other credits?
Various loans and other credits
Sms Loans – A small loan that is processed and paid off quickly. The requirements for these loans are normally lower than for other loans and credits. Ordinary loan amounts are USD 500 – 20000 and the loan is usually repaid within a few months. The reason why the loan is called “sms loan” is that people often took these loans via sms a number of years ago, but today they are usually applied directly on the credit company’s website. Therefore, this term is really obsolete, but since most people still use the term sms, we at Good Finance also do so.
Quick Loans – Another name for sms loans. The term fast loan is used to emphasize that the borrower gets his loan quickly.
Online Credit – An account credit that you can open directly online, but most often refers to an account credit that is only administered online and offered by non-bank credit companies. These loans usually have a higher interest rate than regular account loans but lower interest rates than sms loans.
Account Credit – A credit that is linked to an account and that is found at most banks. Sometimes the credit is linked to a specific account, sometimes the credit goes on when the own money in the account is over. An account credit gives you a certain amount of credit that you can use when you want and have no maturity, on the other hand, you have to pay off what you have borrowed once a month.
This is rarely a problem because you can always borrow again
Micro-loans – Sometimes the term “micro-loans” is used instead of fast loans and sms loans to show that the loan is small, but there are also other credits called micro-loans. The most common microloans are those that help small businesses in economically vulnerable countries and the loans that small businesses in Sweden can take.
Internet loans – Sometimes internet loans are used as a synonym for sms and fast loans, but this is not so common anymore. Actually, all types of loans taken via the Internet are Internet loans, for example, sms loans, private loans, and online loans.
Online Loans – Same as Internet Loans. There is also a lender called Net loans.
Private loan – A unsecured loan that is used for consumption and is aimed at private individuals. Ordinary loan amounts for private loans are USD 10000 – 400,000, but there are both larger and smaller private loans. The maturities can range from 1 year up to 15 years.
Blank loans – Another term for private loans, is not used so often today. The banks have deliberately renamed blank loans to private loans to show that the loan is only aimed at private individuals.
Credit card – A card that is linked to credit with a certain amount of credit and when the card is used, money is deducted directly from the credit.
Debit Card – A card that is linked to credit with a certain amount of credit. Once a month, the user receives an invoice at the amount used and usually, you do not have to pay any interest at all if you pay everything at once, you get an interest-free credit. Usually, the interest-free credit is 30 – 45 days, but if you pay off what you have used, you have to start paying interest. Many times, the credit companies launch their debit cards as credit cards, which creates some confusion.
Member Loans – Trade unions and some other organizations sometimes offer favorable membership loans to their members, ie loans with reasonable terms and low-interest rates.
Mortgage loan – A bank loan to pay down the mortgage for a home while you sell your old home. The mortgage loan must be repaid as soon as the old home is sold. Some, however, take a private loan to pay down the down payment, especially those who do not already have a home and who do not have any saved money when buying a home.
Cash deposit loan
A loan for, for example, the home or car’s cash contribution, that is, the contribution the bank wants you to take care of when you take out a loan with collateral. Those who lend money to the cash contribution usually take a regular private loan.
Car loan, MC – Loans and Boat Loans – A loan with or without collateral to buy a means of transport. If you take out a loan that requires collateral, you must also borrow or save for the cash contribution while a car loan, motorcycle loan or boat loan without collateral works like a regular private loan.
Mortgages – Loans for a home, also called a home loan. All mortgages require security and a cash contribution.
Restart Loan – A loan for those who find it difficult to get a loan because of a debt balance with Good Finance. However, the restart loan requires that you have a home as collateral and settle your debt with part of the loan. However, few banks offer such loans.
Business Loans – Loans that only companies can take. Most corporate loans do not require collateral (eg microloans), but there are exceptions.