What Is the Best Way to Borrow Money Fast?

Estimated reading time: 6 minutes

Last updated on November 26th, 2025 at 05:38 pm

The fastest ways to borrow money are usually payday loans, borrowing from family or friends, using a credit card, or applying for a small loan from a credit union. These options can release funds quickly, sometimes within hours, but each comes with different costs, risks, and eligibility requirements.

MoneyHelper has a useful overview of short-term borrowing options and how to compare them safely. The right choice depends on how urgently you need the money, your credit situation, and what you can realistically repay.

Credit unions are often one of the lowest-cost fast-borrowing options, and GOV.UK outlines how credit unions work and who can join. Payday loans may be quicker, but they tend to be more expensive and come with stricter affordability checks.

Below, we break down the quickest ways to borrow, what they cost, and what to watch out for before applying.

A Quick Overview of Fast Ways To Borrow Money

Payday loans – These are short-term loans designed to provide quick access to small amounts of money, often paid out on the same day. They come with high interest rates, so they should only be used for emergencies.

Borrowing from family or friends – This can be the quickest and cheapest option if someone is willing to help. There’s usually no interest, but it’s important to agree repayment terms to avoid tension.

Credit cards – If you already have a credit card, you can use it immediately. If not, approval can take days. Interest can add up quickly unless you clear the balance promptly.

Credit union loans – Credit unions offer smaller, more affordable loans with fair interest rates. Funding isn’t instant, but approvals can sometimes be quicker than standard bank loans.

Overdrafts – If you already have an arranged overdraft, you can access funds straight away. Requesting a new overdraft depends on your bank and credit score and may not be instant.

Guarantor loans – These require someone with strong credit to back your application. Not instant, but often quicker than a traditional bank loan once the guarantor completes their checks.

What Is The Cheapest Way To Borrow Money Fast?

The cheapest fast borrowing options are usually credit unions, followed by help from family or friends and then credit cards. These choices tend to have lower interest rates and fewer fees compared with payday loans or quick online lenders.

Credit unions are often overlooked, but they usually offer some of the most affordable borrowing options in the UK, even for people with limited credit history. If you already have a credit card, using it and repaying the balance within the next billing cycle can also be cost-effective.

Payday loans are fast, but they’re typically the most expensive method. They’re designed for emergencies, not everyday borrowing, so the cost should always be taken seriously.

What Is The Cost To Borrow Money Fast?

Product type	Typical interest rate / APR (or common range)	Example cost if borrowing £500
Payday loans	Very high — often circa 1250% APR (≈ 0.8% per day)	If repaid in 30 days: ~ £620 total (i.e. £120 interest/fees)
Family / Friends	Often 0% interest (informal personal loan) — but depends on agreement	~ £500 (i.e. just repay what you borrowed)
Credit union loans	Typically ~ 12% – 43% APR depending on lender & loan size	If ~ 20% APR over 12 months → repay ~ £550–£560 total
Credit cards	Typical purchase-rate APR around 22–24% (when interest is charged)	If £500 carried for a year without paying back → cost ~ £610–£620 total (interest ~ £110–£120)
Overdrafts (arranged)	Often ~ 20–50% APR depending on bank and account	If £500 overdrawn for a month → maybe ~ £520–£530 (i.e. ~ £20–£30 interest)
Guarantor loans	Lower than payday loans — example ~ ~ 50% APR for bad-credit guarantor loans	Borrow £500 over 12 months → repay ~ £750 (i.e. ~ £250 interest)

Which Borrowing Options Should You Avoid?

It’s important to be cautious when you’re under financial pressure. Some lending options appear quick and easy but come with significant risks.

You should be wary of:

• “No credit check loans” – Legitimate UK lenders always run checks. Anyone claiming otherwise is operating outside FCA rules.
• “Guaranteed approval” loans – No lender can guarantee approval without assessing your finances. This language is often linked to unsafe lending practices.
• Loan sharks – Illegal lenders operate without regulation, charge extremely high rates, and often use intimidation or threats.
• Social media loans – These are unregulated, unsafe and extremely risky.
• Ultra-fast approvals without affordability checks – FCA-regulated lenders are required to verify that you can repay the loan. If they don’t, that’s a red flag.

Fast borrowing is sometimes necessary, but it should never come at the cost of your long-term financial security.

How Fast Can You Borrow Money?

You can sometimes borrow money on the same day depending on the type of credit and how quickly you pass the checks. Payday lenders often offer same-day payouts, especially if you apply early and provide accurate information. Using an existing overdraft or credit card is usually instant.

Credit union loans and overdraft increases may take longer because they involve more checks. The complexity of your finances and the size of the loan will also influence how quickly the lender can make a decision.

How Do Lenders Decide Whether To Approve Fast Loans?

Fast loans still require the same core checks as any regulated borrowing, although they may be processed more quickly. Lenders typically decide whether to approve fast loans based on the following:

• Your identity – To confirm who you are and prevent fraud.
• Your income – To make sure you earn enough to repay the loan.
• Your credit history – To understand how you’ve handled credit in the past.
• Affordability – FCA rules require lenders to run affordability checks to make sure repayments won’t push you into financial difficulty.
• Bank data – Some lenders use open banking to verify your income and outgoings instantly.

There is no such thing as a “real” instant approval loan from a regulated provider. If a lender doesn’t check anything, it’s either a scam or an illegal lender.

What Should You Consider When You Need To Borrow Money Fast?

Fast borrowing often comes with higher costs, so you need to think carefully before committing. Payday loans, for example, are designed for urgent and unexpected expenses, not everyday use. Missing payments can lead to more charges and damage your credit score.

Ask yourself:

• Can you afford the repayments comfortably?
• Will borrowing make your situation worse next month?
• Can you delay the expense or find a cheaper alternative?
• Is there a safer option, even if it takes a little longer?

Sometimes, waiting 24–48 hours for a cheaper loan is better than choosing the fastest but most expensive option.

What If You Need To Borrow Money Fast With Bad Credit?

If you need to borrow money fast with bad credit, your options are more limited, but you still have choices. Some lenders specialise in bad-credit loans, but you’ll still need to show that you can afford the repayments. Payday lenders may consider you, but only if your income and budgeting meet their rules.

Credit unions are often one of the best options for people with bad credit because they focus on affordability rather than just your credit score.

You should avoid any lender that claims to offer “guaranteed approval” or “no credit checks”, as these are signs of unregulated and unsafe lending.