The Catalog

Field guide to loan types

Five specimens, cataloged by how they work, what they typically cost, and who they tend to fit. Use this as a reference before you sign anything — not as a recommendation of any one type.

Specimen No. 01

Payday Loan

High risk 1–4 week term $100–$500

A short advance against your next paycheck, usually repaid in one lump sum on your next payday. Approval is fast and often doesn't require a credit check, which is part of the appeal — and part of the risk.

Typical APR

300% – 400%+

Typical fee

$10–$30 per $100 borrowed

Rollover risk

High — fees compound quickly if extended

Best fit

Genuine one-time gap, repaid in full next check

Watch for

Automatic rollover clauses, post-dated check requirements

Specimen No. 02

Installment Loan

Moderate risk 3–24 month term $500–$5,000

You borrow a fixed amount and repay it in equal scheduled payments over months, not weeks. Costs vary enormously by lender — some are reasonable, some carry payday-level APRs dressed up in a longer term.

Typical APR

25% – 200%

Common add-on

Origination fee (1–10%)

Rollover risk

Low — fixed schedule, but refinancing resets costs

Best fit

Larger, planned expense with a repayment plan you can sustain

Watch for

Prepayment penalties, add-on insurance products bundled in

Specimen No. 03

Title Loan

High risk 30 day term Up to vehicle value

Uses your vehicle's title as collateral, so approval doesn't depend on income verification the way many loans do. The trade-off is real: missed payments can mean repossession.

Typical APR

200% – 300%

Collateral

Vehicle title (car must usually be paid off)

Rollover risk

High — repeat rollovers are common

Best fit

Rarely the lowest-cost option; consider it only after ruling out alternatives

Watch for

GPS/starter-interrupt devices, balloon payments

Specimen No. 04

Cash Advance App

Low–Moderate Days, tied to payday $20–$250

Advances a portion of income you've already earned but haven't been paid yet. Structured around optional tips or flat membership fees rather than traditional interest, which can make true cost harder to compare.

Typical cost

$1–$14 flat, or optional "tip"

Effective APR

Can be low to very high depending on tip amount and advance size

Rollover risk

Low — tied directly to next paycheck

Best fit

Small, short timing gaps between paychecks

Watch for

Subscription fees, "optional" tips that function like interest

Specimen No. 05

Line of Credit

Moderate Revolving Varies

A pool of credit you can draw from as needed, paying interest only on what you use. More flexible than a lump-sum loan, but the open-ended nature makes it easy to underestimate the running total.

Typical APR

20% – 36%

Structure

Draw, repay, redraw within a credit limit

Rollover risk

Moderate — balance can grow if only minimums are paid

Best fit

Recurring or unpredictable expenses over time

Watch for

Annual/maintenance fees, variable rate terms

Not sure which fits your situation?

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