More Information about the Mortgages & Loans Category
There are a variety of different types of loan available. Here's a very quick guide to help you understand a little more about the differences:
A payday loan allows the customer to borrow a amount of money for a short period of time - typically 1 week to a month. The problem with loans of this kind is the extremely high level of interest - often double the original amount or even more
A secured loan uses the borrowers assets as collateral. Examples of this kind include mortgages, logbook loans and hire purchase. This type of credit is usually repaid over a large number of years
An unsecured loan means you will not have to offer any form of security - this means the interest rates will always be higher than secured loans. Example of this type of loan include credit cards, personal loans and overdrafts.
Loans of this require you to provide an adult to vouch for you. If you default or cannot afford to repay your loan it is the responsibility of the guarantor to cover the debt.