PARAGRAPHCredit is critical in the U. Consumer loans come in many forms and with varied terms, ranging from simple promissory notes between friends and family members to more complex loans like mortgage, auto, credit card, student and payday loans. Banks, credit unions and online lenders are the source for most loans, though family and friends can be lenders, too. Other types of credit , like small business loans or a mortgage from the Department of Veterans Affairs, are available only to select people. In addition, loan length and default terms should be clearly detailed in a loan agreement to avoid confusion or potential legal action.