We have all had times when we need almost instant access to additional finances, whether we have been hit with the dreaded emergency bills or have accidentally overspent for the month. There are many different methods to borrow money, from credit cards to arranged overdrafts. But which method is the fastest to give you the additional funds that you so desperately need.
Overdrafts arranged with your bank enable you to have some sort of financial cushion when you seem to be approaching the limit of your bank balance. Overdrafts will allow you to go into a negative amount of money with no additional fees. For people who are constantly approaching their bank account limits, an overdraft could be ideal for you to give you that added peace of mind.
By arranging an overdraft with your bank, this could prevent you from taking out smaller payday loans in order to help you through to your next payday. For example, if you have nothing left in your bank account but are due to be paid in a few days, rather than taking out a payday loan in order to help you make it to payday, an overdraft will enable you to essentially borrow the £50 from your bank with no additional charges, the £50 will just be automatically deducted from your next paycheck.
The only downside to overdrafts is that many banks are reluctant to give them if you have a damaged credit rating. However when approved they can offer a huge amount of help in the short term.
Credit cards are a very reliable financial companion to have in your back pocket. A credit card will enable you to spread the cost of any purchases that you are making in a certain month in order to help with your cash flow. You can borrow money on a credit card but usually have to pay back the borrowed amount within 30 days before being hit with any interest payments. Although credit cards are not as cheap as overdrafts, they can be used more sparingly to help manage your monthly finances and stay on top of bills and outgoings.
For example if you have an outgoing of £100 but are unable to cover the cost of the outgoing yourself, your credit card could step in to make the payment on your behalf and enable you to pay back the total amount within 30 days which can prove a massive help with your monthly cash flow purposes.
Personal loans are a popular choice with many UK consumers with many people taking out personal loans with their bank or building society. Personal loans usually take a couple of weeks to be approved by your bank due to the numerous credit and personal checks that need to be carried out. Personal loans are more of a long term borrowing method with many banks offering a minimum repayment term of 3 months minimum. This means that if you only intended to borrow the funds for 1 month, you would have not option but to spread the loan over 3 months which would incur unnecessary interest rate charges as you will be borrowing for a longer period than what is actually needed.
Instant Payday Loans
The fastest and most common method of borrowing is to take out a payday loan. Payday loans are usually transferred into your bank account on the very same day of application and come with a minimum borrowing term of just 7 days, which means you can borrow for exactly the amount of time that you need to. Payday loans are used as a financial alternative to help guide you through to your next payday with the amount borrowed automatically deducted from your next paycheck.
This type of borrowing is seen as the most common and fastest way to finance that is available throughout the UK
Payday pixie offer instant payday loans and short term loans with no credit checks, which enables us to maintain our 15 minute cash transfers to our UK customers.