What’s the best way to borrow money?

2 minutes to complete

This tool shows you some of the main ways to borrow money so you can find the best option for you. Answer some quick questions to see your borrowing options. These might include credit cards, loans, salary advances and car finance. Ready to get started? Check the best way to borrow money.

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How the best way to borrow money tool can help you

Discover the different ways to borrow money – up to £50,000.
Compare the different borrowing options.
Choose the best way to borrow money for you.

How it works

We'll ask you a few simple questions and give you a result.
The best way to borrow money will depend on how much you need, what you need it for, how quickly you can repay and your credit score.
It’s helpful to know your credit score upfront, but you can still use this tool if you don’t.
This tool won’t help if you're looking for ways to borrow money to buy a property. See How to apply for a mortgage instead.

Need to know

Your answers are confidential. We won't store or share them with anyone else.
Using this tool won’t affect your credit score, but your credit score might be affected if you later apply to borrow money.

What to expect from the best way to borrow money tool

The tool compares many different types of borrowing – including credit cards, overdrafts, and loans – to work out which might be suitable for your needs. Here are some examples of the results you might see.

Credit cards

Depending on your circumstances, the best way to borrow money tool will show you the different types of credit cards that could be right for you.

0% spending credit card

A special type of credit card that charges no interest on things you buy - usually for a number of months or years.

Pros

No cost if you repay before the interest-free period ends
Can repay early
Usually get free Section 75 protection if something costs £100 to £30,000
Eligibility calculators show your chances of being accepted before applying

Cons

You'll pay expensive interest on anything after the 0% period ends
You must pay the minimum monthly repayment to avoid fees and keep the 0% deal
You can't spend more than your agreed credit limit

0% money transfer credit card

This lets you transfer your credit card balance to your bank account as cash. This is helpful if you’re unable to pay on card or to pay off an overdraft. You’ll pay a one-off fee but will pay no interest for a number of months.

Pros

Low cost if you repay before the interest-free period ends
Can repay early
Eligibility calculators show your chances of being accepted before applying

Cons

You’ll pay a transfer fee, often up to 4% of the amount you’re transferring
You’ll pay expensive interest on anything after the 0% period ends, or if you spend on it
You must pay the minimum monthly repayment to avoid fees and penalties
You usually can’t transfer more than 90% of your agreed credit limit

Balance transfer credit card

If you pay credit card interest, you can move what you owe to a new card that charges 0% (or low) interest for a number of months or years. There’s usually a one-off fee to do this.

Pros

Low cost if you repay before the 0% or low interest period ends
Your repayments will clear the balance quicker as there’s less interest
There are options with no transfer fee
Eligibility calculators show your chances of being accepted before applying

Cons

You’ll pay expensive interest on anything after the 0% or low interest period ends, or if you spend on it
You’ll usually pay a transfer fee, often around 3% of the amount you’re transferring
You must pay the minimum monthly repayment to avoid fees and keep the 0% deal
You might not get a large enough credit limit to transfer everything you owe

Loans

The best way to borrow money tool might show you the different types of loans that could be right for you.

Loan from a bank or building society

A personal loan usually lets you borrow more (and for longer) than other types of credit. Loans up to £50,000 can often be repaid up to five years.

Pros

You pay a fixed monthly repayment
You'll clear the loan at the end
Eligibility calculators show your chances of being accepted before applying

Cons

You often won't know the exact interest rate you'll get until you apply
Late fees if you miss a payment
You might pay a fee to repay early

Overdrafts

An overdraft lets you spend more than you have in your bank account – up to an agreed limit. You’ll usually pay daily interest until it’s repaid.

Overdrafts

Pros

Can repay at any time
Can withdraw the money as cash if needed

Cons

Expensive interest, charged daily
Overdraft limits are usually low
You might pay fees if you spend more than your limit and the payment is refused
Being in your overdraft can negatively impact your credit score

Read more about overdrafts or compare overdraft rates using our Compare bank accounts tool.

0% overdraft on your bank account

A special type of overdraft that charges no interest if you spend more than you have in your bank account – up to an agreed limit.

Pros

No cost if you stick within your agreed limit
Can repay at any time
Can withdraw the money as cash if needed

Cons

Overdraft limits are usually low
You might pay fees if you spend more than your limit and the payment is refused
Being in your overdraft can negatively impact your credit score

Read more about overdrafts or see MoneySavingExpert’s Top bank accounts with low-cost overdraftsOpens in a new window

Compare borrowing options

Feature	Credit card spending	Credit card balance or money transfer	Loans
Interest-free period available	Yes	Yes	No
Typical borrowing limits	£50 - £10,000	£50 - £10,000	£1,000 - £50,000
Flexible repayments	Yes	Yes	No
Fixed monthly payments available	Yes	Yes	Yes
Purchase protection	Yes	Yes	No
Short term – under two years	Yes	No	No
Long term – more than two years	No	No	Yes

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