Lead generation is a popular way for businesses to find potential customers without having to do all the footwork themselves.  If you don’t already know what lead generation is, that’s where a third party collects information from people who are interested in a product — such as getting a loan.  The third party then sells the information to one or more businesses — lenders, in this case.  By concentrating on working with people who have already expressed interest in a loan, lenders are more likely to make a sale.

But what kind of leads are there?  Here are two basic kinds of leads:

Mortgage Leads – Say you are looking to buy a house.  You go online and submit your information to a third party via an online form, which then sells your information to a handful of lenders.  That kind of lead is known as a mortgage lead: potential customers who are interested in getting a mortgage, either to buy or refinance a house.

Education Leads – College is a necessity to get anywhere in life, but rising costs means that more and more students need financial aid in order to get their education.  Although college hopefuls would prefer to get scholarships and grant money, it’s more common for them to have to take out a loan in order to pay for school.  With student loans becoming so prominent, many third parties collect application information from students, which they then sell to lenders.  These types of leads are called education leads.

There are other types of leads, of course, but these are two of the most common.