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Your borrowing options

Ways of borrowing money

To apply for borrowing, you must be 18+ and living in the UK. Subject to lending criteria.
On this page
About our loans
About our credit cards
About overdrafts
About buy now pay later

Loan, credit card, overdraft or buy now pay later?

If you're looking to borrow money, we know it can be difficult deciding which product best suits your needs. We've summarised the options below for you to easily compare and contrast.

Loans

A personal loan will allow you to borrow a fixed amount over a fixed period of time. 

How this option could help you

  • You’ll know how long it will take to repay your loan and how much you need to pay back each month
  • An option if you're looking to consolidate debt or fund a one-off large purchase or project
  • Suitable for medium and longer term borrowing needs

What you should know

  • You can normally choose to pay your loan off early, but remember there may be an early repayment charge
  • You might have to pay a fee if you're late with monthly repayments. This would result in you having to pay back even more
  • If you're unable to meet your repayments on time it could have a negative impact on your credit score

Find out more about our loans

Credit cards

A credit card lets you buy things up to an agreed limit and pay for them later. 

How this option could help you

  • You could use it to make different purchases and pay for them later, either in one go or in chunks
  • Could be used to consolidate other credit or store card balances
  • It could spread the cost of a big purchase
  • If you use your card responsibly it could have a positive impact on your credit score

How do credit cards work?

What you should know

  • You will be charged interest on any outstanding balance. So if you only pay back the minimum monthly payments, it's an expensive way to borrow. You should try and repay your balance in full, or as much as you can each month
  • You might have to pay a fee if you're late with monthly repayments. This would result in you having to pay back even more
  • If you struggle to meet the monthly repayments on time it could have a negative impact on your credit score

See our range of credit cards

Overdrafts

An arranged overdraft allows you to spend a bit more money than you hold in your current account, up to an agreed limit. 

How this option could help you

  • Could be suitable if you need to cover a short term expense
  • Useful for covering unexpected bills or as a short-term safety net before your next payday
  • Could be useful if your income or outgoings vary from month to month

How do overdrafts work?

What you should know

  • You will be charged interest on the amount of arranged overdraft you use. The interest is normally incurred daily and charged to your current account on a monthly basis
  • If you go over your arranged limit, you’ll be charged interest. This could result in payments being rejected, and additional charges
  • The interest rate for overdrafts may be higher than the interest rates for personal loans and credit cards

Take a look at our overdrafts

Buy Now Pay Later

'Buy Now Pay Later' can refer to a few different borrowing options, however Ednites Credit Union Buy Now Pay Later is a virtual card that lets you spread the cost of your purchases into four monthly instalments.

How Ednites Credit Union Buy Now Pay Later could help you

  • Splits purchases into four consecutive monthly payments
  • You don't need a plastic card - pay online or in-store by adding your virtual card to Apple Pay or Google Pay or by using card details that you can find in your mobile app
  • Like other regulated credit products, you can make additional payments or clear your balance at any time
  • Your available credit refreshes with each payment so it can be used again and again for eligible purchases
  • Eligible to residents with a Ednites Credit Union current account, aged 18+  and earning £10k+ per year

What you should know

  • A late fee will apply if a payment is not made by the day after it's due. Missing payments may also negatively impact your credit score 
  • You need to spend a minimum of £50 for each transaction to be able to use this credit product - both online and in-store. Exclusions apply
  • The maximum credit limit is £1000 (subject to affordability), so this may not be your best option if looking to make a larger purchase
  • Purchases are split into four monthly payments, which potentially makes it less flexible than other borrowing products
  • You'll need a smartphone compatible with our mobile app and a mobile number to be able to apply 

About Buy Now Pay Later

Something else we can help you with?