Loan status is a big one in payday lending.
But it’s not the only factor you should know.
So we’re going to look at the different types of loans available on payday loans.
How many payday loan lenders do you know?
The BBC’s chief financial correspondent David Walliams says you should have a good idea of the type of loan you’ll be borrowing from as you apply to a payday lender.
What are payday loans?
There are three types of payday loans, with the largest being the £20 loan.
These are the kind that come in a range of terms, such as fixed term or variable term, but all have an initial fee of £20.
These loans are usually used by people who are on low incomes, or people who don’t qualify for government benefits.
They’re also available to borrowers in certain areas, such the inner-city, working-class areas, or those who are disabled.
How much does a payday loan cost?
A payday loan is a loan with a fixed rate, or interest rate.
For example, a 30-minute fixed-rate loan would cost around £20, or £25 for a 30 minutes loan.
But there are many different types, with interest rates varying depending on the type and length of the loan.
How to apply to payday lendersThere are a number of ways you can apply for a payday mortgage loan.
If you’re going into debt to cover living expenses or paying your rent, there are different ways to go about it.
You can apply online.
If you can’t afford to pay it off upfront, you can buy a fixed-term loan or a variable-term mortgage.
If both options are available, you might consider applying to a short-term fixed-interest loan.
Find out more about how to apply for payday loans:Find out how to buy a payday homeA short- or variable-interest payday loan has a rate of £1,000 or £1.25 a minute, or you can get a fixed monthly payment of £150.
Find more about payday loansIf you are buying a house, there’s a new set of rules that you’ll need to abide by if you want to get a payday-related loan.
You must have an income of less than £150 a week for your payday loan to be approved, but you may be able to borrow it from a credit card or other loan that you can borrow at a lower rate.
Find the rulesYou must be over the age of 16 to apply.
You’ll need a job that allows you to work part-time for a set amount of time each week.
You should have the right to work in a job you want.
The lender can also charge you interest on any loan that is not approved, as long as the interest rate is not more than 4% per month.
You may also have to pay an upfront fee of up to £150 if you apply for an interest-only loan.