PAY DAY LOANS: payday loans have become popular in recent months due to the credit crunch and lack of lending by traditional institutions such as Banks and Building Societies. Borrowers can benefit by using payday loans wisely. Payday loans do carry high APRs and late repayment penalties are often higher and punitive. It is advisable to repay the amount borrowed with the given term usually 30days.

PERSONAL LOANS: Lenders assess you for a personal or unsecured loan based on your ability to repay; taking into account such things as your integrity and credit score from the many credit agencies such as Experian and Eqifax.
These credit agencies record information about you such as: CCJs, general credit rating, be it good or bad credit rating which they are then used by lenders to ascertain your suitability to repay loans. It is always advisable to obtain check your credit score often to keep abreast of information recorded on it.

As with every loan, you should ensure that you are able to repay the amount borrowed within the agreed time period to avoid any penalties by lenders.