4 Things You Need To Know About Credit

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things you need to know about credit

If you need a bit of extra cash to keep you going until you get your next paycheck, you’ve probably considered a few different kinds of credit. There are a lot of different options out there, each with its own set of pros and cons.

In fact, once you start searching, you might be pleasantly surprised at the large range of credit options! Of course, that just means that your decision is made even harder as there are more options to narrow down.

Not sure which type of credit is best for you? Here are some great options.


If you don’t need to borrow too much money, and are planning on paying it back very soon, then you should be ok by just using the overdraft on your bank account. Most bank accounts come with an overdraft. This is a pre-agreed amount that the bank will let you be overdrawn by. Some banks will offer interest-free overdrafts for a fee while others will not put a charge on theirs, but there will be some interest added to the amount you need to repay. If your account doesn’t always have an overdraft attached to it, it’s worth speaking to your bank manager about one.

Credit Cards

If you take a look at EnjoyCompare’s website, you will see that most credit cards come with quite a few benefits and advantages. However, you shouldn’t let all of these benefits dazzle you. Sure, there are other benefits to using a credit card, especially if you want to buy something important that you can’t quite afford yet. However, you need to remember that the fees that often come with credit cards are often extremely high. Not only that, though, but you might only get a short amount of time to make the repayments.

Personal Loans

If you need a bit more money and want to borrow it over a longer time, then it’s worth speaking to your bank about taking out a personal loan. Most banks are happy to give their customers personal loans as long as they have a good credit rating. Don’t think that there is no way you will get a loan if you have a poor credit rating, though. You might be able to get one from one of the non-traditional lenders. If not, it’s easy enough to repair your credit rating and there are plenty of online how-tos that can help you.

Debt Consolidation Services

If you already have some debt, then you might be interested in using a debt consolidation service that can help you with all the repayments. This could be especially useful if you were thinking of taking out another loan. Rather than doing that, speak to a consolidation firm and they will move all of your debts into one larger and easier-to-handle monthly repayment. They can also increase any loans for you to give you a bit of extra cash.

So, which of the above credit options do you think is the best for you?