If you need to borrow money quickly then you may not feel that you have many options and so could think that a payday loan is your only choice. This might be the case but as with all lending you should look at all of your options.
A credit card can take time to arrange but if you already have one then it could be an option for you. Obviously, it depends how you need the money. You may be able to buy what you need on a credit card, but it may be that you need cash. You can make cash withdrawals on a credit card but these are expensive as you get charged differently to normal credit card payments. You will usually start being charged interest right away and so it can be really expensive, so do check this out before considering this option.
With a credit card you only have to repay a small amount each month. This means that you do not have to repay the debt that quickly. This means that if you do not think you will be able to afford to repay it quickly then you can do so at your leisure. However, you will be charged each month and so if you leave it outstanding for a long time the charges will really add up. It is wise to try to repay it as quickly as you can and if you feel that you are unlikely to do this then this may not be the best option for you.
You need to have a good credit record in order to have a credit card and so you may not be able to get one. You also need to have some credit left on the card and if you have one and you have spent up to your credit limit then this will not be an option for you.
An overdraft may seem like a great option to have money quickly. You can either withdraw cash, use a cheque or a debit card and get the money that way. This will be quick and easy. Of course, you need an overdraft facility to do this and it will only come with certain accounts. You will also need to have not used up all of your agreed overdraft limit. It is possible to borrow more than you have agreed but the fees and interest rates are extremely high if you do this.
It is worth calculating the cost of doing things this way as it can be one of the most expensive ways of borrowing if you use an unauthorised overdraft and do not pay it off very quickly. It can seem a good option because the overdraft will be automatically repaid when you put money into the account but with the cost of it you may find that it takes a long time to repay or that you will keep going overdrawn near to your next pay day and this will mean you keep getting new lots of charges and fees as well as the interest added on. Sometimes there is a charge every time you go overdrawn or every time you go into your unauthorised overdraft so you need to be careful of this.
A payday loan can be arranged very quickly and so it can be a good option if you do not have a credit card or overdraft facility or they have been maxed out. Some companies will be able to organise the loan within a few hours. These loans will usually be for a few hundred pounds, so whether they will suit you will depend on how much you want to borrow. They will also usually require one lump sum payment just after you get paid. This means that you need to make sure that you will have enough money to be able to make this payment when it is required. You should find that you will be able to find out exactly how much you will be required to repay before you take out the loan and therefore you will be able to work out whether it is an amount that you will be able to afford. A payday loan does not normally require a credit check either, so if you have a poor credit rating then this could be an option that will be easier for you to get. You will need a bank account though and an income.
These are just three of the options available to you if you need money really quickly. It is worth taking some time to consider your options even thought you do not have much time. If you make the right choice then you will end up paying less and getting the type of loan that is best for you. Do make sure that you compare lenders too as there will be differences and you could also save money or get better value for money if you do this.