Scroll Top
19th Ave New York, NY 95822, USA

What Can Online Loans Be Used For?


If you need money now, borrowing money online is likely to be one of the solutions you will turn to, but it can be a difficult task. There are many different options for loans available online to help you get cash fast in the US, including the likes of payday loans, installment loans and cash advances, all of which can be found online. 

Depending on your specific needs and requirements, you will likely find yourself exploring a range of different loan options, each of which will have its own merits and considerations. Remember, you should only look to borrow money online if you have considered and explored the alternatives before committing to a payday or other type of online loan.

If you have experienced an unexpected financial cost in your life such as a medical bill or a car repair you were not expecting then you may want to ease the financial burden by borrowing money online in the form of a payday loan or other online loan option in the US. 

Payday loans are just one of the many types of loan you can find online in the US to help you with emergency bills and unexpected expenses when they occur. Technology and the loans industry continues to advance and you may even be able to get a mortgage loan online or a loan that can help you consolidate your debts, to help you with your finances. 

What Are The Different Types Of Online Loans?

Online loans cover a broad range of financial products and loans and depending on which state you are in, will help determine how much you can borrow and in what form. It will also dictate and help determine various limitations and details of your loan, for example, any interest rate cap or maximum amount you may borrow. It is important to check this all before you look to borrow any amount of money, whether you need to borrow $1000 or a smaller amount like a $400 loan.

There are many different types of online loans available in the US. Always research your options

What Can I Use an Online Loan For?

Online loans are not designed for any specific use or reason to be taken out. However, typical reasons online loans are needed and there subsequent uses include:

  • Emergency vehicle repairs
  • Emergency home repairs
  • Unexpected medical bills
  • Consolidating debts like credit cards and other loans
  • Paying rent or a mortgage

The important point is that online loans in the US are designed to be used when an emergency strikes and when times are tight. If that is the case and you find yourself facing a financial emergency, you may consider applying for an online loan to see you through the tough period. Once you are through the difficult period you can then repay the loan and get back on your feet.

Secured Loans Online

Secured loans can also be referred to as homeowner loans or title loans which are different to payday loans; this is because the debt or the loan is linked directly to an asset such as a property such as a home, or the title deeds to a vehicle, thus the name ‘title loans.’

In most cases the loan is linked to the borrower’s property as there are many loans which are able to be linked to and secured against your home or property.

A secured loan can be secured against any type of valuable collateral such as a car or a luxury item such as artwork. However, secured loans in the US are nearly always taken out by people who own a home or vehicle and therefore the property or vehicle is used as collateral.

In the US, secured loans are used for mortgages or for borrowing large amounts of money, possibly to make home improvements and build an extension or to do a loft conversion.

This is helpful because it allows you to borrow larger sums of money and are longer-term loans, with potentially lower risk to the lenders providing the loan.

Lenders have the security of knowing that they can reclaim the value of the loan if you default by repossessing your home and therefore they are often more likely to be willing to offer larger amounts of money and lower APR rates.

Secured loans are often an option for people who do not have a good credit history but who own a property. As your property acts as security on the loan, you will be more likely to qualify for a secured loan than an unsecured loan with bad credit.

Repayment periods are often longer on secured loans than unsecured loans as well because of the security of being able to reclaim the house.

Unsecured Loans Online

Unsecured loans, often referred to as ‘unsecured personal loans’ on the other hand are another option to consider and are often marketed as ‘personal loans.’ These are the most popular type of loans and payday loans fall into this category.

Unsecured loans allow you to borrow between $100 and $35,000 but the APR on these loans will be higher than that for secured loan options.

Unsecured loans or personal loans can be used for any number of things but there are often used for things such as home improvements or paying bills or even to cover large emergency costs such as a big medical bill.

The better your credit score, the more reliable you look to lenders. Unsecured loans are flexible because lenders will allow you to choose how long you want to repay and it can be just for a short term fix such as a payday loan.

Most importantly, unsecured loans, unlike secured loans, do not require you to put up any asset as security or collateral, such as your property as security or collateral as would be the case when it comes to secured loans in the US. Lenders believe they do not need this guarantee in order to be repaid by you and therefore there is less need for a collateral such as a car or a house.

Unsecured loans are often for smaller amounts of money such as $1000 and can in some cases be paid back in installments over a much shorter period of time than secured loans. However, traditionally, the likes of payday loans were designed to be taken out in between paydays and then repaid just after the borrower receives their pay check from their employer.

Online Payday Loans

Payday loans are unsecured loans that allow you to borrow small amounts of money such as $500 and pay back the loan on your next payday. Payday loans are becoming popular in the US when people need emergency funds.

When you have experienced an unexpected cost such as having to put a new engine in your car, you might need just that little bit of extra help to help you get through the month until your next payday.

Payday loans often have a high APR because you are paying it off over a very short amount of time and you can get bad credit payday loans as well. Make sure that you are eligible for a payday loan and that it is legal in your state before applying for a payday loan online.

Debt Consolidation Loans

Debt consolidation loans can be both an unsecured or secured loan and are used to help you consolidate all your debts into one place.

If you are experiencing many debts and many loans and you are finding it hard to keep up with all the different repayments you need to make every month then you can get a debt consolidation loan that will help you pay off most of the debts leaving you with one or just a few to pay off each month.

This type of loan can help you focus on making repayments and not having to deal with the consequences of not repaying your loans on time.