Many people don’t have a lot of funds saved if an unexpected expense crops up, like an additional bill or if something essential needs repairing. There are a few options available in this type of situation, you simply need to work out which is the best choice for you. Asking friends and family to borrow money is not something most people feel comfortable doing. It can be a difficult thing to bring up, and you wouldn’t want to put them in financial difficulty by lending money to you.
Going into an unplanned overdraft with your bank will often cost more than a payday loan, so this isn’t a good option. Bank loans can be useful for larger expenses, though you’ll probably need a good credit history to take one out. If you need the money quickly, you also need to be aware that some banks can take up to 3 days to transfer the funds to you.
Credit cards can also be a good option for those with better credit histories, as if you have bad credit, you’ll generally be charged a higher rate of interest. The Money Saving Expert website has more information about credit cards and interest rates.
If you have poor credit, you may be looking into Instalment loans with short-term lenders. There is a lot to choose from, so you could be filling in a number of application forms. Having lots of credit checks or declined applications on your credit file can lower your credit score, so the best way to protect your credit file as much as possible could be to use a broker. You’d only need to complete our short application form, and we can do the searching for you. If you’re successful, we’ll then put you in touch with the best lender for you. We only use reputable lenders, so you can be assured that you’ll be borrowing from a responsible lender, authorised and regulated by the Financial Conduct Authority (FCA).