Credit card alternative: save up the money
Is this purchase absolutely necessary right now, or could it wait?
For example, if your car has been written off, is there any way that you could carpool or use public transport? If you're using public transport, consider whether the cost of fares is less than the interest you'd pay by borrowing money.
If the expense can wait, you might think about saving up the money instead. While this will inevitably take longer, using your own funds, rather than borrowing, will save you money on interest.
Need help working out your monthly budget? Charity MoneyHelper have put together this free Budget Planner, which you might find useful.
Credit card alternative: borrow from family or friends
Could a loved one lend you the money you need?
Borrowing money from a friend or family member can be risky; if the situation is not handled with respect and transparency, your relationship could break down. It’s vital that both you and your loved one feel comfortable talking about money with one another.
Before any money is exchanged, it’s important to agree on a repayment schedule; it’s a good idea to get this in writing.
Credit card alternative: research personal loans
A short-term loan could be a suitable alternative to a credit card if you need money to put towards a financial emergency, such as urgent car repairs or a replacement washing machine.
If approved for a personal loan, the lender will send the funds to your bank account, and you’ll repay the money in monthly instalments over a pre-agreed term. Your monthly repayments will include interest.
Alternatives to credit cards: search for a short-term loan with CashLady
CashLady is a credit broker and could help you search for a short-term loan. The lenders on our panel offer personal loans from £100 to £10,000 and depending on the amount of money you apply to borrow, you could repay your loan between 3 to 60 months.
Can I search for a credit card alternative loan with CashLady?
CashLady can scan a panel of over 30 direct lenders to help you search for a suitable loan if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and a valid debit card; and
- Have a regular source of income paid into your bank account.
Credit card alternative loans: how does it work?
If you’d like to use CashLady’s credit broking service to search for a short-term loan, you can expect the journey to look like this.
1. Tell us how much money you need, and how long you’d like to borrow it for. Fill in our online form and let us know some key information about you; this should only take around five minutes.
2. Next, it’s over to us to run a soft search and scan our panel of lenders for a loan that could be a good fit for your financial needs.
3. If we’re able to match you with a loan, you’ll be redirected to the lender’s website. Here, you can find out more about the lender and the loan and decide whether you’d like to make a full application.
4. Happy with the loan? If you’d like to go ahead, the lender will complete a creditworthiness assessment, which will include a hard search or Open Banking. Please note that a hard search will remain on your credit file for up to 12 months, and multiple hard searches in a short period of time will negatively affect your credit score.
5. If you pass the lender’s creditworthiness assessment, you’ll be formally offered the loan. At some point during the journey with the direct lender, you’ll be sent a credit agreement; be sure to take the time to read through this carefully before choosing whether to sign and return.
How quickly could I get a loan?
Some of the lenders on the CashLady panel could send your money on the same day your application is approved, although it’s important to be aware that the time it takes for the money to become available in your account will depend on your bank’s policies and procedures.
Credit card alternatives for bad credit
Did you know that you could still be eligible for a loan, even if you have bad credit?
CashLady works with several lenders who specialise in loans for people with bad credit, and they could be willing to consider your application.
Please note that a bad credit loan could come with a higher rate of interest, which will increase the overall cost of borrowing.
What’s the best alternative to a credit card?
The best alternative to a credit card will depend entirely on the individual borrower and their financial situation.
It’s important not to rush into searching or applying for any credit product, and you should set some time aside to carry out thorough research before you decide.
The best alternative to a credit card will be the one that suits your personal circumstances and is affordable for you.
Get free money advice
Free, impartial money and debt management advice can be accessed through a variety of charities and organisations, including StepChange, MoneyHelper, Citizens Advice, and National Debtline.
