Borrowing Options

Ways of borrowing money

Overdraft, loan or credit card?

If you're looking to borrow money, we know it can be difficult deciding which product best suits your needs. We've summarised the options below for you to easily compare and contrast.


A personal loan will allow you to borrow a fixed amount over a fixed period of time.

  • You’ll know how long it will take to repay your loan and how much you need to pay back each month
  • An option if you're looking to consolidate debt or fund a one-off large purchase or project
  • Suitable for medium and longer term borrowing needs

  • It's great if you can pay off your loan early but remember there may be an early repayment fee
  • If you're unable to meet your repayments on time it can have a negative impact on your credit score


Credit cards

A credit card is a way of borrowing money from your credit provider. It lets you buy things up to an agreed limit and pay for them later.

  • You could use it to make different purchases and pay for them later, either in one go or in chunks
  • It can spread the cost of a big purchase
  • Using a credit card can offer some forms of protection
  • If you use your card responsibly it could have a positive impact on your credit score

  • You will be charged interest on any outstanding balance so if you only pay back the minimum monthly payments it's an expensive way to borrow. You should try and repay your balance in full, or as much as you can each month
  • You might have to pay a fee if you're late with monthly repayments. This would result in you having to pay back even more
  • If you struggle to meet the monthly repayments on time it can have a negative impact on your credit score


With an Arranged Overdraft you can spend a bit more money than is in your current account up to an agreed limit.

  • Could be ideal if you need to cover a short term expense
  • Useful for covering unexpected bills or as a short-term safety net before your next payday
  • Depending on your current account provider, you could get an interest-free buffer

  • If you go over your agreed limit you will likely be charged on the amount you go overdrawn
  • The interest rate for overdrafts may be higher than the interest rates for personal loans and credit cards
  • If you go over your agreed limit this can have a negative impact on your credit score


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Still Unsure?

If you've not quite made up your mind, pop over and use our borrowing options tool. It can help you discover if a loan, overdraft or credit card is best for you.

Something else we can help you with?