Payday loans are short-term, high-interest, unsecured loans. These are loans people take out when they need money fast for things that may happen out of their control, like a car breaking down. So, this type of loan would be perfect for Warren. They are called payday loans because most people must pay their loan back, with large interest fees, by their next paycheck.

The benefit of a payday loan is that you do not have to wait to be approved to get your loan.

The drawback to this loan is large interest fees and fines, so a missed payment may cost you more money than you have at the time. Always do research before taking out any payday loan.

Title loans are loans that require an asset as collateral. This means that you must put up something you own, like a car, as collateral in order to take out the loan. These loans are popular with people with a low credit score because the credit score does not matter in getting these types of loans.

The pros and cons of title loans are similar to those of payday loans. A title loan enables you to get money fast, but the drawback is large interest fees and huge fines for missed/late payments.

Student loans are loans designed specifically to help students pay for post-secondary education, including tuition, books, supplies, and living expenses. They allow students, who do not have the financial means to fully afford to pay for their school now, the ability to pay for their school over time.

A student loan will also allow you the ability to attend a school that is more expensive. Additionally, paying off your student loan will result in your credit score increasing.

The drawback of student loans is that they can be very expensive. Upon finishing post-secondary school, you will start your independence with debt. They also may take years to fully pay back. If not paid on time, there can be large fines that can end up hurting your credit score rather than helping it.

Mortgage loans, or simply mortgages, are loans specifically used to buy a house or any real estate. These loans, like all loans, offer the ability to purchase something (in this case a house) without having to pay for it all at once.

Mortgages require collateral, which in most cases is the house itself. This means that if you repeatedly miss loan payments, the lender can take possession of the house. For this reason, it is especially important to pay all mortgage payments on time.

Auto loans are, as the name suggests, loans specifically for buying a new or used car.

Since they are designed exclusively for cars, the money from these loans is given to you in one large amount. Then, like all other loans, it must be paid back over time with interest. Most lenders give you between 36 and 72 months to pay it back. The amount of money borrowed, how much time you have to pay it back, and the interest rate will all affect how much you must pay back each month.

The benefits and drawbacks are the same as with other loans. You will be able to purchase your car now, but the interest rates may be high and there will always be penalties for missed and/or late payments.

Line of Credit (LOC) is a type of loan agreement between a financial institution and a borrower that establishes the maximum amount of money they will loan to that borrower. This preset borrowing limit can be used at any time. A borrower can take money from their LOC until the limit is reached; and as money is repaid, it can be borrowed again and again as long as the LOC remains open.

The benefits to having an LOC are flexibility and the capacity to borrow, repay, borrow, repay, in a continuous cycle.

The drawbacks to an LOC are large interest rates, severe penalties/fines for late and/or missed payments, and the temptation to overspend.