When should you borrow money?
Borrowing money can be a helpful way to get by if unforeseen emergency expenses, like car or urgent home repairs, appear before payday. However, borrowing money should only a last resort, and not something to be done on a regular basis. Regardless of your credit score, you should be fully sure you’ll have the funds to pay back the original amount plus interest when payment comes due. Also, you should only ever borrow from reputable, authorised lenders where you will be protected by regulations around the interest you’ll be charged.
Top tips when applying for a loan
Before you apply for a loan, it’s important to ask yourself the following questions:
- Is a loan my only option?
Before applying, consider any alternatives to taking out a loan so you can avoid interest fees. If applying for a loan is the only option available to you, thoroughly research lenders to ensure your chosen company is the best place to borrow money.
- What do I need from a loan?
Before filling out any applications, it’s helpful to know exactly what you are looking for and over what time frame:
- What is the nature of the expense? Is it necessary? Is it urgent?
- How much do you need to borrow?
- How soon do you need the money?
- Are you eligible to apply?
- How soon will you be able to repay, and can you afford interest?
- Do you want to pay back in one lump sum or in monthly instalments?
- What are your existing debts, and can they and new debt be managed simultaneously?
Once you know how much you’re looking for and over what period, you can use our adjustable calculator to see how much you’d pay in interest for a hypothetical Sunny loan.
Paying back what you borrow
If you choose to borrow money in the UK, the most important thing is to ensure you can repay the loan, plus additional interest charges. Not only is it a part of the contract you will sign and a legal obligation, but failing to do so can result in penalties. For example, some lenders will charge late fees if your payment is not made on time. Others may not charge fees, but will still negatively affect your credit score if you miss a payment. If you miss enough payments, your lender could assign your debt to a third-party collection agency.
Borrowing money with Sunny
At Sunny, we aim to make sure that borrowing money is a simple, easy process. After a short online application, you will usually receive a decision in minutes and if successful, money will be deposited in your bank account in as little as 15 minutes.
We try to provide complete honesty and transparency in all of our communications. That is why:
- Our loans have no fees, guaranteed. You don’t have to worry about late repayment fees, application fees, or admin fees.
- We give you five days to change your mind and repay the principal with no fees and no interest. You can do this up to three times in 12 months.
- We have flexible repayment options that allow you to pay more each month if you wish. By repaying earlier, you can save money on interest, as you’re only charged interest on the number of days you have the loan.
If you have any more questions about borrowing money, please browse our FAQ section. Alternatively, you can contact us using our online live chat, on Twitter, via email firstname.lastname@example.org or by phone 0800 7315 444 or 01284 715 444 and we’ll be happy to help.