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What you need to know about borrowing money

What to ask if you need to borrow money

There are times in most people's lives when their wallet isn't big enough to cover some surprise expense. You can find yourself a little short without realising how it happened. If you do need to borrow money, you need to take many factors into consideration before you act.

  • How much do you need to borrow?
  • How soon do you need the money?
  • How soon will you be able to repay, and can you afford interest?
  • What is the nature of the expense? Is it necessary? Is it urgent?
  • Do you have friends or family from whom you could borrow reasonably?
  • Will your job give you an advance on pay?
  • What are your existing debts, and can they and new debt be managed simultaneously?

When should I borrow money?

Borrowing money is a wise practice when you know that you certainly can pay it off, with interest, at the end of the lending period. The longer the loan, the more you need to be certain that you're keeping to a payment schedule, so job security is also important. A loan should last long enough for you to save the money to repay it, and be saved primarily for urgent needs that cannot wait, like car repairs for example. Borrowing from friends and family is always an option, though sometimes risky. When you don't want to strain relationships with those close to you by bringing money into the equation, borrow money from a certified lender.

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Paying back what I borrow

The most important thing when it comes to borrowing from a lending company is paying back, in full and with interest, your loan. Not only is it a part of the contract you will sign and a legal obligation, but also failing to do so can result in penalties.

What if I can't repay?

This is something you should avoid if at all possible. This is a question you need to ask yourself before borrowing any amount of money. The consequences for failing to repay on time can be very serious and long-lasting. Some lenders will charge late fees, further compounding your financial problems. Others do not charge fees, but still will negatively affect your credit score during when you miss a payment. Miss enough payments and your lender will put your debt to a third-party collection agency that will be persistent in retrieving the dues.

For more tips on borrowing money take a look at our "Clever Borrowing" video below.

Borrowing money with Sunny

At Sunny, we make certain that borrowing money is a simple, easy process. That said, remember it is something you should think carefully about. We try to provide complete honesty and transparency in all of our policies and our application. Explore some of the features that come with borrowing with Sunny and compare them to other lenders.

  • Our loans have no fees, guaranteed.

  • We give you 5 days to change your mind and repay the principal with no fees and no interest. You can do this once per month, no questions asked.

  • Applying is via our easy to follow online application and delivers a decision in minutes.

  • If approved, the cash you borrow is sent to your bank within 15 minutes.

  • Money tips – videos, guidance, quizzes and tools to help improve your money management skills.

  • Sunny's flexible overpayment plan allows you to pay more each month if you wish, meaning you repay earlier and save money in interest.