Loans and credit



Taking out a loan or using credit is when you borrow money and agree to pay it back at a later date with an additional charge, known as interest. Some of the different types of loans are personal loans, home loans, credit cards and overdrafts

The cost of a loan will vary greatly depending on the type of loan, the lender, how long you take to pay it back, the interest rate and fees and charges. It is important that you do not take on a loan or use your credit card if you cannot afford to repay it. For advice on credit, loans and borrowing, go to www.moneysmart.gov.au/borrowing-and-credit

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