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Personal loans: money in your pocket

• Need to cover an unexpected expense at an inconvenient time? Lack the cash for an urgent home repair or medical bill? Short-term personal loans and cash advances are the most common solution.

  Both are types of unsecured loan that allow the borrower to borrow money without providing collateral to the lender. In essense, they are loans secured against you personally and the trust the lender places in you to repay the money. They almost always have higher rates of interest than secured loans because of the increased risk to the lender that they will not be repaid. Borrowers can expect to undergo varying degrees of credit history checks before being granted personal loans.

• Short-term loans are offered by banks and financial service companies and can vary from a few thousand dollars to as much as $30,000. The amount you will be permitted to borrow depends on factors such as your credit history, salary and other outstanding debts. The repayment period can vary from a few months to several years.

• A cash-advance loan differs from a short-term loan in so much as that it is offered for a far shorter period and generally much less money. Cash advance loans are aimed at people needing extra cash until they receive their next paycheck and are therefore usually for an amount equal to or less than what the borrower earns. Most lenders demand repayment within two weeks, or, less commonly, a month.

• Find information on other kinds of loans