Types of Loans and Other Financial Services

Short-term loans range from those that are typically expensive to use – for example, payday loans and short-term instalment loans – to those that still have a cost, but it is often lower – for example, a cash advance on a credit card and lines of credit.

There might be a few reasons why some short-term loans and services are more expensive than others, for example:

  • A more expensive loan might be offered to borrowers with limited or poor credit histories, as the lender might see them as a higher risk to repay the loan – however, there might be other options even with a limited or poor credit history
  • A less expensive loan might be “secured” – meaning you’ve ensured the loan will be paid back by offering some form of collateral, such as your car. Another example is a Home Equity Line of Credit (HELOC), which uses your home as collateral

Beware of  "lead generator" – they might seem like lenders, but they are not. To find out more about the common types of loans and other financial services, and their features and risks, click on any of the following: