Installment loans give consumers money to buy many different products and services, like cars, homes, or a college education.

Consumer installment loans, also called personal or signature loans, are commonly used for small purchases, like buying a computer or paying for unexpected expenses. You can apply for an unsecured consumer loan from local banks, credit unions, or online lenders.

Installment loans to buy a new or used vehicle are available from local banks, credit unions, online lenders, and some car dealers. You may be required to make a down payment on the purchase price—especially if you don’t have good credit.

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For example, if you want to buy a used car that costs $10,000, the lender may require that you pay 20% or $2,000 up front in order to borrow the remaining balance of $8,000.

As previously mentioned, a car you buy becomes collateral for the loan. If you don’t make payments as agreed, the lender can repossess, or take back, the vehicle to pay off the outstanding loan balance. The lender typically holds the title of the car until the loan is paid off in full.

The term or repayment period for a car loan is typically 2 to 7 years. Choosing a longer loan term reduces the monthly payment but can significantly increase the amount of total interest you have to pay.

What’s Being “Upside Down”? A new car depreciates, or loses its value, very quickly—especially in the first three years—depending on the make and model. For example, a $20,000 car might be worth only $15,000 after a year. But your outstanding loan balance could be over $16,000 if you made a low or no down payment (depending on the loan terms).

When you owe more for a car than it’s worth, you’re “upside down” on the loan. If you want to trade or sell the car, you have to pay extra out of pocket to pay off the loan. Making a down payment helps you avoid this common financial problem of being “upside down”—and helps reduce your monthly loan payment. So, even if you have good credit, it’s wise to make a down payment on a car loan.

What’s a Car Title? A car title is a document that shows who purchased a vehicle and lists information including the vehicle identification number (VIN), make, year of manufacture, purchase price, registered owner name and address, and the legal owner if any money is owed. When a car is sold, the title must be transferred to the new owner.

What’s Vehicle Leasing? Instead of owning a car you can lease one for a set period of time. After the lease term (usually two, three, or four years) expires, you have to return the vehicle to the leasing company. Monthly lease payments may be less than a loan payment for the same vehicle and term. However, after you pay off a car loan the vehicle belongs to you. You can sell it for cash or continue to drive it for many years without having to make a car payment. Therefore, purchasing a car is more cost effective when you keep it for the long term.

Student loans are funds you can use for education expenses, such as tuition, books, room and board, and other living expenses while you attend college. There are two main types of unsecured installment loans that may be available to you or your parents: federal student loans and private student loans.

Federal student loans are issued by the federal government and most don’t require a credit check for approval. Most students qualify for some type of federal loan, up to certain limits, depending on their income or their parents’ financial qualifications. To apply, you must complete the Free Application for Federal Student Aid (FAFSA). You can submit it online at the U.S. Department of Education website at fafsa.ed.gov.

Here are three types of federal student loans:

Private student loans originate from a private lender, such as an online institution, a local bank, or a credit union. Private education loans are generally used to bridge the gap between the cost of college and the amount you can borrow from the government.

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Eligibility for a private loan depends on your or your parents’ financial qualifications and credit scores. You submit an application directly to a private lender and don’t have to complete any federal forms.

Private student loans typically have higher interest rates and less repayment flexibility than federal loans. Therefore, always apply for a federal student loan first.

You can get a home loan or mortgage from local banks, credit unions, or online lenders. They can be used to

There are three main types of home loans:

What Is Foreclosure? Foreclosure is a legal process a home lender uses to collect the balance of an unpaid debt when a borrower defaults or stops making loan payments as agreed. The lender can take legal title to the property, evict the borrower(s), and sell the property to pay off the debt, according to state laws.