Loans, overdrafts and buying on credit are all ways of borrowing money. Different methods of borrowing have different features, which make them more or less suited to types of situation and types of people. Before you choose a type of borrowing you must make sure you will be able to …

There are many different types of loan available. It is important to check for repayment penalties such as late charges and understand the difference between secured and unsecured loans before you apply for one, as the potential ramifications can be severe.

Loan Sharks are unlicensed moneylenders who charge very high interest rates and sometimes use threats and violence to frighten people who can’t pay back their loan.

A Credit Card lets you pay for purchases using borrowed money, your bank will usually agree a limit to how much you can spend on your card. The credit that you use has to be paid back at a later date, along with interest, which will vary from card issuer.

Credit Scoring is a way for lenders to know that you are going to be able to repay any money they lend you. If you are applying for a bank account, loan or credit card you will usually be credit scored, and a lender may check your credit history.

An overdraft is a way of borrowing money on your current account that your bank or building society may allow so you can to cover short-term cash-flow problems when there is no money in your account. You should always try and avoid going over your agreed overdraft, as the resulting …

Annual Percentage Rate, or APR, is used to describe the cost of borrowed money, whether this is from loans, overdrafts or buying on credit. APR will vary from lender to lender, so it is important to compare rates from different lenders.