There are different ways you can borrow money for the short to medium term, each with their own pros and cons. Make sure you choose the most suitable for you. These can be:

We cover mortgages in a separate section – see Mortgages.

When you apply to borrow money in any of these ways, you’ll usually be asked to complete an application form. Your answers help the lender to predict how big a risk they're taking by lending you money. This is called a credit score – see Credit scoring.

You’ll be charged interest on what you borrow, usually monthly. The interest rate varies depending on the type of loan. You can use the APR (Annual Percentage Rate of charge) to help you shop around for the best deal. APR tells you the cost of the loan taking into account the interest on the loan and other charges. All lenders have to tell you what their APR is – see What is APR?

You may be offered insurance for example, Payment Protection Insurance (PPI), to help cover your monthly repayments on loans, credit/store cards or catalogue payments if you are unable to work – see PPI.