Certain types of loans should be avoided

Cannot be borrowed once they've been repaid. Common types of closed-ended loans include mortgage loans, auto loans, and student loans.

are short-term loans borrowed using your next paycheck as guarantee for the loan. Payday loans have notoriously high annual percentage rates (APRs) and can be difficult to pay off

are loans that rely on an asset as collateral for the loan.Interests rates for secured loans may be lower . Examples Car Loan, house.

are loans that you can borrow over and over. Credit cards and lines of credit are the most common types of open-ended loans

Make payments on time,Good Job history,Open a Savings account and make regular deposits.

don't have asset for collateral. These loans may be more difficult to get and have higher interest rates.

Closed-ended loans

Open-ended loans

What does APR stand for

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