There are many types of lenders and other credit sources. The services and the costs of those services vary widely:

Banks offer a very wide range of consumer credit services including loans with or without collateral, loans and other financing for major purchases such as automobiles, home improvement loans and financing, and home mortgages. Most banks also offer the convenience of bank credit cards which are widely accepted by stores and which can be used for cash advances at many banks. Of course, banks take deposits, and a great number also offer the convenience of "overdraft checking"; under such a plan, the customer has a pre-arranged borrowing limit and simply writes his own loan by overdrawing his checking account.

Credit unions offer consumer loans designated "for any worthwhile purpose" to members only. Credit unions also take deposits and pay interest, offer share draft accounts and revolving loans, but, as yet do not offer credit cards.

Finance companies (loan companies) offer consumer loans and financing for all purposes to the general public. Most finance companies tend to limit the amount loaned to any one customer and do not take deposits, offer credit cards or overdraft checking.

Insurance companies commonly offer loans to holders of their policies. The loans are frequently limited to the cash value of the policy held by the borrower and must be applied for through the insurance agent or the company's home office. Rates are usually very low because you are, in essence, borrowing your own money.

Savings and loan associations, in addition to the traditional long term home mortgage loans, often make other consumer loans especially for home improvements and automobiles.

Savings and loans take deposits but do not offer credit cards or overdraft checking and generally prefer not to make very small loans.

Merchants are not lenders, as such, but commonly offer financing services. Such merchants will sell "on time" or arrange financing for the consumer-buyer.

There are also illegal lenders, more commonly referred to as "loan sharks" who operate without license or supervision and thrive on the business of low-income or credit pressed consumers. The lowest interest rate commonly charged by a loan shark is 120 percent per year. The average rate is approximately 20 percent per week, which is 1040 percent per year. High interest rates are not the only evil connected with illegal lenders.

This type of lender usually tries to keep the borrower in debt. He does this by requiring the borrower to pay the entire loan at one time or no payment will be accepted. If the borrower misses interest payments, he is usually subject to a heavy delinquency charge or refinance fee and harassing collection methods. Although it is easy to simply decry illegal lenders, it is also true that for some people the loan shark may be the only available source of credit. Consumers who come into contact with lenders they suspect of loansharking should report such individuals and incidents to the S.C. Department of Consumer Affairs.