Types of Loans
How the main ways to borrow in the UK work, and how they compare.
Mortgages
Credit Cards
Car Finance
Secured vs UnsecuredMost borrowing in the UK comes in one of four shapes: a loan you repay in fixed instalments, a credit card you can use again and again, finance tied to a car, or a mortgage tied to a home. The biggest difference between them is what is at stake if repayments stop, which our guide to secured and unsecured borrowing explains in full.
At A Glance
| Type | Tied to an asset? | Typical size | Typical length | If repayments stop |
|---|---|---|---|---|
| Personal loan | No | Hundreds to tens of thousands of pounds | Months to a few years | Your credit file is damaged and the lender can chase the debt, including through the courts |
| Credit card | No | A credit limit you can reuse | No set end date | The same as a loan, plus charges and a reduced or closed limit |
| Car finance | Yes – the car | Roughly the price of the car | Usually two to five years | The car can be taken back, with extra protection once you have paid a third |
| Mortgage | Yes – your home | Tens or hundreds of thousands of pounds | Often 25 years or more | Your home can be repossessed |
A general guide only – every lender sets its own amounts, terms and rules.
Which Ones Does Quick Loans Arrange?
Today we arrange unsecured personal loans only, from £100 to £3,500. We used to help with mortgages and credit cards too, and these guides carry on where those pages left off, explaining how each type works so you can make a confident choice wherever you borrow. If a personal loan is what you need, our loans page is the place to start.