Other options for borrowing with a low income
Credit cards are only one way to borrow money if you have a low income or are unemployed. Other products may be more appropriate depending on how much you need to borrow and the provider’s eligibility requirements. Here are some alternatives:
Guarantor loans
Guarantor loans are personal loans where you get a close friend or family member to act as a guarantor, agreeing to meet the loan repayments if you’re unable to.
Whoever agrees to be the guarantor should be aware of what they’re signing up for.
Being a guarantor is a major commitment, and they'll need a good credit score and, ideally, be a homeowner.
Credit union loans
Credit unions offer savings and loans to specific groups, for example, people in a particular area or profession.
These loans are often significantly cheaper than ones from short-term lenders. If there's a credit union in your area, they could be a good option.
To borrow from a credit union, you may have to become a member. Some require you to start saving with them first.
Ask your bank about an overdraft
Overdrafts are far from the cheapest way to borrow, but can also be one of the quickest ways to get a line of credit extended to you.
Simply ask your bank if it can either give you an overdraft facility on your account or extend your current one. As with a credit card, you can repay as much as you choose, and interest is charged daily. This means they can be a good solution if you only need the extra cash for a day or two.
