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Too often, we run into financial emergencies, medical bills, or other urgent expenses. You may need to get a new car in a week or less, or need funds to suddenly fix your bathroom's plumbing after an accident or aging appliances. When you need funds quickly, you may consider getting a personal loan to take care of these expenses. There is a range of personal loan types, so educate yourself before you make a final decision.

The majority of personal loans are unsecured loans with fixed repayment plans. However, there are other types of loans as well, such as variable and secured loans. Each loan has its differences, benefits, and risks, and so choosing one over the other includes considering your credit score and whether you can pay off the loan. Most commonly, unsecured personal loans do not require collateral and riskier for the lenders. They have higher interest rates, and terms range from one year or less to seven years.

The first of the other types of personal loans is the secured personal loan. A secured personal loan is backed by collateral, which may be seized when you default on your loan. You can use your car, home, or personal savings as collateral. Rates are lowered than unsecured personal loans, and as such, are less risky. 

Personal loans also come in the fixed-rate and variable-rate variety. Fixed-rate personal loans come with the benefit that your interest rate and monthly payments stay the same for your loan's life. This makes paying off a personal loan easy to predict and fit into your budget. Variable-rate loans, however, have interest rates that fluctuate, and your monthly payment may change. However, this type of personal loan's primary benefit is that they carry lower initial interest rates. There is also a cap on interest rates, so it will never dramatically skyrocket.

Other types of personal loans include debt consolidation loans, co-sign loans (best for those with thin or no credit), and personal credit lines. You may speak to your financial institution and ask them about the type of personal loans offered, your situation, and which may be best for you. Personal loans also include payday loans, which have risky, dramatically high-interest rates, credit card cash advances, or pawnshop loans. When pawnshop loans are taken out, you borrow against an asset, which is lost if you default.

Choose a personal loan carefully. Whether you choose a short-term loan through American Web Loan settlement or a personal line of credit, think of your financial future.