Different Ways to Borrow Money

There are many different ways to borrow money. Outlined below is a useful guide to some of most common ways of borrowing money.

Loans

There are many loan companies offering to lend you money. They will check your credit worthiness and may offer you a secured loan or an unsecured loan.

A secured loan means that you undertake to give the lender property you own if you do not keep up the repayments. In return, you usually get a lower APR and longer repayment period. An unsecured loan costs more in repayments but does not carry all the risks of a secured loan.

Overdrafts

Your bank might allow you to overdraw - that is, borrow from the bank by taking out more money than you currently have in your account.

You will be charged interest on your overdraft and possibly a fee as well. If you go over the overdraft limit set by the bank, you will have to pay a lot more.

Check what the bank charges for overdrafts and try hard not to go over your limit. If you do need to borrow and cannot repay the amount very quickly, you might be better off with a bank loan.

Always check the bank's interest rate and other charges.

Credit cards

Using a credit card to buy things means that you do not have to pay right away. Each time you use a credit card, you sign a slip of paper (or type in your PIN) to say that you agree to the cost of your purchase being added to your credit card account.

You will get a bill from the credit card company at the end of every month listing all the things you have bought. With most cards, if you clear the balance in full before the date given, you will not have to pay any interest.

Be very careful when using a credit card. Small purchases mount up very quickly - keep a record of what you spend. If you spend more than you really mean to and can't pay it all back in time, you will be charged interest.

Take great care of your card. If it is lost or stolen, report it immediately.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a... Read More

Getting Your Credit Report and Understanding Whats On It

If you intend to apply for a loan, you need... Read More

Check Your Credit Before Shopping For That Home Loan

Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More

Good Credit is King, When Qualifying for Mortgage Programs

If you want to purchase a new home or refinance... Read More

Building Your Credit History

Today, credit is an indispensable part of our lives. In... Read More

Choosing A New Credit Card

1. Choosing A new credit cardThere are many reasons for... Read More

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account... Read More

Credit Reports: Find out why you have been refused Credit.

You may already have 2 or more credit cards in... Read More

Identity Theft ? Guard Your Childrens Social Security Numbers

Identity theft is a growing concern among Americans, and rates... Read More

Credit Cards

Credit cards are a form of unsecured credit. The issuer... Read More

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Credit Report ? How to Improve Your Credit Score

One of the great mysteries of life is how the... Read More

Credit Repair Services vs. Do-It-Yourself Credit Repair

Millions of Americans suffer because of bad credit these days,... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

1. Payment History -- 35%The number of accounts paid as... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

Why Is It important!

Your credit is the most important thing you have other... Read More

The Ghost of Expected Surprises

Here, Cratchet, what do you think you're doing?Uh, er, leaving... Read More

Credit Report ? Watch Out for Parking Tickets

The economic downturn of the last five years has affected... Read More

7 Surefire Ways To Repair Bad Credit

Do you have a poor credit rating? If so, you... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of... Read More

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the... Read More

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain... Read More

7 Ways To Squash Identity Theft

It is the scourge of our age: identity theft. Thieves... Read More

Finding Reputable Credit Card Companies

You're interested in getting the best credit cards for your... Read More

Tips for Credit Card Surfers

Moving money from credit card to credit card to take... Read More

Choosing The Best Credit Card To Apply For

Always shop around to get the best deal when choosing... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

Credit Counseling -- Why It Doesnt Work For Most Debtors

"Cut Your Payments in Half!" the headline screams. "Consolidate Your... Read More

Are 0% Credit Cards Reaching Their End?

Are Credit Card companies starting to feel the pinch? We... Read More