[Admin]

When it comes to personal loans, I like to categorize them into two main types: a personal loan and a payday loan.

Personal loans are usually unsecured loans that are given based on the borrower's credit, employment, and income. Because the approval process is more in-depth, lenders are willing to give higher loan amounts. Often times, borrowers can get loans up to the range of $15,000 or $20,000.

Payday loans are also unsecured, but credit is not an important factor in the approval process. Employment, income, and a bank account are the main criterias for qualification. Due to the higher credit risk, payday loan amounts are typically limited to $300 or $500. Payday loans are notorious for high interest rates, but can come in handy if you need quick emergency cash which you can pay back in a short amount of time.