6.

6-Pay day loans

Advantages
 Pro 1: They’re easy to access

 Pro 2: They have fewer requirements than other loans

 Pro 3: They don’t check your credit

 Pro 4: It’s an unsecured loan

DISVANTAGES
 Con 1: They’re expensive

 Con 2: Payday loans are considered predatory

 Con 3: It’s easy to get trapped in a debt cycle

 Con 4: They target low-income, minority communities

 Con 5: They have access to your bank account

 Con 6: Payday lenders can sue you for the money you owe
 Con 7: They don’t help you build credit

6.7-Personal loan
Some lenders place restrictions on whether products are available to existing
customers or not. This is worth checking too as if you already hold a credit card
with a lender for example, they may be unwilling to offer you another.

There is little point in applying for products that you don't stand a chance of
getting, especially as the added search enquiries on your credit report will do
you no favours. Instead, you need to check the application criteria carefully to
make sure you fulfil it before you apply.

If you've already applied only to find that you did fall outside their desired
application criteria, then you'll know why you've been rejected and are free to
look elsewhere for a similar product with a more flexible application criterion
should you wish to at a later date.

6.8-Motorbike
Factors:
 Cost of bike
 Day to day expenses
 Cost of repairing previous bike
 Money available
6.9-Factors that lenders consider
Lenders need to determine whether you can comfortably afford your payments. Your
income and employment history are good indicators of your ability to repay
outstanding debt. Income amount, stability, and type of income may all be
considered.
Term Definition
APR Annual percentage rate (APR) refers to the
yearly interest rate you'll pay if you carry a
balance on your credit card.

Authorised overdraft An authorised overdraft is one you

Card verification value (credit card)
County court judgment (CCJ)
Unauthorised overdraft
have applied for and had approved
by your bank.
Card verification value (CVV) is a
combination of many features used
in Debit Cards for the purpose of
establishing your identity.
You may get a county court
judgment ( CCJ ) or high court
judgment if someone takes court
action against you (saying you owe
them money) and you do not
respond
An unauthorised overdraft is one
your bank may let you use even
though you haven't applied for it.