Is a Payday Loan Best if I need Money Fast?

If you need some money in a hurry and need to borrow it, then there may be very few options available to you. As a payday loan is quick to organise then it could be a good option but there may be a few others that you could consider as well.

Credit card

If you have a credit card then this can be a very convenient way to get some extra money. However, a credit card is limited in what you can use it for. You can use it to buy things in shops but it may be that you need to pay a bill or need cash. You can draw cash from a credit card but it works out to be very expensive. There can be a charge to do this at an ATM and you could also start being charged interest on the money right away, so it is expensive. If you are paying a bill, then they may not accept a credit card or they may have a charge to use one. Also, you may not have a credit card and if you have a poor credit record then you may not be able to get one. If you can get one, it may take too long for it to come through.


An overdraft is where you draw more money from your current account than you have and therefore then borrow money from your bank. Some people will have arranged an overdraft with their bank and have what is called an authorised overdraft. This will allow them to borrow up to a certain amount. They will still get charged but it will be a lower amount than if they borrow without it being arranged. This sort of unauthorised overdraft can be really expensive. There will be interest and charges and therefore this can be a very expensive way to borrow money. It is available right away and you should be able to draw it as cash or transfer it to another bank so it can be convenient. If you do not have a current account, then it can take time to open one and so this may not be a quick enough option.

Payday loan

A payday loan can be arranged within a few hours so it is almost as quick as an overdraft or credit card that have been arranged already. You can borrow anything from a few hundred to a thousand pounds. You will need to have a bank account and an income as you will need to set up a direct debit to repay the full loan plus charges on your pay day. This will help to ensure that you have the money available to pay it. As payday loans are set up to help those with a poor credit record, they do not do a credit check so if you have no credit card due to a poor credit record then this could be for you. They do charge quite a bit, because of the risk that they are taking on, but it may not be more than the overdraft or credit card depending on how long you take to pay them off. If you do not have a current account or an income then you may not be able to get a payday loan. Sites like Cobra Payday Loans are a good starting point if you’re looking for a reputable short term lender.


So there are quite a few things that you need to compare when you are deciding whether a payday loan is best when needing a quick loan. If you have access to a credit card then this could be even quicker but it may be expensive, particularly if you need cash and may not be any good if you want to pay a bill or transfer money. An overdraft could also be quicker but could be a lot more expensive than a payday loan. It may be that some options are better for fulfilling your need than others and that some are not available to you because of your current credit status. It is therefore worth seeing what is available to you and being careful with your choice if you have options. Think about the advantages and the consequences of each one. Once you have decided which loan type to get make sure that you compare lenders within that loan type to get the one that looks the best for you. That could be the one that is cheapest but there are other factors that you need to think about as well such as what you think of the lender, what their reputation is like, what their customer service is like and things like that. It is not an easy decision to make as there are so many factors to think about. It is worth considering what is most important to you and that will help you to make the right decision.

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