When you're searching for personal loans, you will find several different types of loans: Cash advances: These loans are given to consumers with bad credit and allow them to withdraw money from an ATM or bank. Credit builder loans: These loans help you improve your credit by taking out a small, low-interest loan from your bank or credit union and repaying it over a period of a few months. Installment loans: These unsecured loans require you to make equal (usually monthly) payments over the life of the loan.