How can I borrow money?
A simple guide to borrowing with bad credit
So an unexpected bill has popped out of nowhere - maybe the car’s broken down, maybe the boiler’s packed up, whatever the situation, if you need cash quickly, don’t panic. You’ve got a bunch of options - the most important thing now is to work out which is best.
Are short term loans the best option?
When looking for cash quickly, you may instantly think ‘short term loan’ and yes, that’s certainly an option, but short term loans are expensive, and applying for one could seriously affect your credit file. So before you go down this route, take a breather and let’s look at your alternatives.
Should I choose a credit card?
A credit card can be a much cheaper option. There are a whole bunch of credit cards out there for a number of different circumstances and if you cover your balance in full each month, you won’t even have to pay any interest. Lots of cards will give you an instant online decision, and if you’re accepted, a card could be in your hand within days.
Are bank overdrafts good value?
Another option could be to ask your bank to temporarily increase your overdraft. If you go down this route, it’s vital that you understand what and when you have to repay and plan for this in advance, as any unexpected overdraft fees could soon mount up.
Should I choose a Guarantor Loan?
If you’re open to spreading the payments over a slightly longer period, a guarantor or unsecured loan is an option. Some lenders will pay out within 48 hours, but again be sure to compare your options so you get the best rates and don’t borrow more than you need. I appreciate it may not be the easiest thing to do, but asking friends or family is another option to consider. The key thing here is to lay down the rules and discuss all scenarios before you enter an agreement. This way, you’re | both on the same page from the start and your relationship will stay in one piece.
Should I borrow money?
If you need the money to cover a regular bill, then borrowing more is probably not the answer. Instead pick up the phone and have a chat with the company in question as they have to listen to you and they’re more than likely going to be able to help you out. If you need cash quickly, the bottom line is, you have options. If you can avoid borrowing, then do so, if not then don’t get carried away and only borrow what you need. As always, know where you stand, compare your options, and choose wisely.