Types of Borrowing & Accounts

types of accounts

basic

• people with bad credit/ bankruptsy

student

• has low intrest

standard/ normal

• has over draft and card

package/ premuim

• has additional benifits for a fee

types of borrowing

overdraft

• borrow money thru ur overdraft to

• ads: only borrow what u need,

• no intrest if payed in full

• disads: intrest if not payed back,

• overdraft is only a limted amount

personal loan

• borrow money for a specific thing usualy over a longer period of time

• ads: borrow money over a longer period i time

• disads: intrest costs,

• fees,

• debt accumilation

hire purchase

• buy an asset in regular instalments the buyer pays of the total + intrest then they get to keep the asset

• ads: flexible repayment terms/ early repayment.

• approval less dependant on credit score

• disads: intrest.

• missed payments effect credit score

mortgages

• long term loan secured against an assets

• ads: borrow alot of money over a long time

• disads: long term big commitment

creditcard

• loan thru the back. either need t pay the minimum or full debt each month

• ads: flexible and can be done thru ur bank.

• no intrest if u pay in full

• disads: intrest if u only pay the minimum

• debt accumilation

payday load

• very short term loan with very high intrest

• ads: helps with bills that need to be payed immediately

• disads: very high intrest.

• debt accumilation.

• snowball