Are you looking to borrow £200?
No matter how much you plan and save, there are times when you might need some extra money to tide you over.
In this guide, we’ll take you through the options available for borrowing £200, so you can decide which works best for you.
Is a £200 loan the right option for me?
Personal loans are an easy way to borrow large sums of money at short notice—but they’re not the only option for borrowing £200.
For a loan amount of less than £500, you could find that a credit card is a better option. There are a number of reasons for this:
- Credit cards are useful for small purchases or unexpected emergency costs.
- Cardholders often receive benefits and rewards from their credit card provider.
- Regularly repaying a credit card can help improve your credit score.
- You won’t have to worry about repaying your debt according to a rigid schedule—flexible repayment plans give you some breathing space.
- You only pay interest on the remaining balance after making the minimum monthly repayment—meaning you could clear the £200 before it has built up any interest.
So, if you’re planning to borrow £200, a credit card may fit your needs better than a personal loan or overdraft.
Can I use a credit card to borrow £200 with a bad credit score?
The good news is that you can borrow £200 (or lower amounts like £100) with a credit card even if your credit score isn’t as high as you’d like it to be.
However, it’s important to note that you may have a lower credit limit and higher interest rates than you might if your credit score was good.
Your credit score is a three-digit number that indicates your credit risk. It is used by lenders to determine how reliable you would be at repaying the money you want to borrow.
This figure is based on your credit report, which is calculated using the length of your credit history, the amount of debt you have, and your history of repaying your debts on time.
The higher your credit score, the better you will look to potential lenders. A high score will give lenders more confidence when assessing your request for credit, so they will be more likely to offer you higher amounts and more favourable credit terms.
In comparison, you may receive a low credit score if you’ve never borrowed money before. This is because it’s difficult for lenders to evaluate your credit risk if you have no history of borrowing and repaying debts.
Similarly, your credit score can be negatively impacted if you have a history of missed or late payments.
However, having a low credit score doesn’t mean you can’t use a credit card to borrow £200. This is where Freedom Finance can help.
This way, you can browse different credit card options for borrowing £200 without hurting your credit score.
Can I apply online for a credit card to borrow £200?
Yes, you can. Comparing credit card providers and applying for a card online is made simple with our credit card finder tool.
All you have to do is enter some basic information about yourself and your borrowing requirements.
We’ll run our checks and then offer you a list of credit card providers we think can offer what you’re looking for.
Once you open your account and receive your card, you can use this to make your £200 payment.
Can I afford to borrow £200?
If you’re borrowing £200 by taking out a credit card, it’s important that you consider whether you can repay this amount. You want to be sure that you can repay any debts and avoid spending more than you can afford.
If you’re going to repay the £200 over a few months, you can check the minimum repayable amount and the interest rate (APR) to calculate your monthly payments.
Remember that credit cards usually only apply interest to the remaining outstanding balance after some of the debt has been repaid. As long as you can repay the minimum monthly repayment every month, you should be able to afford to borrow £200 on a credit card.
What can I use a £200 loan for?
You probably already have a purchase in mind for your £200 loan, and credit cards can be used for a variety of things. Maybe you want to buy a new piece of furniture, or need some extra cash to cover your household expenses?
Some common reasons people take out a personal loan include:
How do I repay the money I’ve borrowed?
The repayment process when you borrow money on a credit card is similar to borrowing through a personal loan.
You’ll repay your £200 in regular increments, typically monthly instalments. Credit card repayment schedules are more flexible than loans, which have agreements that are enforced the moment a loan is transferred.
At the end of each month, your credit card provider will send you a statement that includes:
- The amount you spent on that card over the month.
- Any interest applied to your debts.
- The minimum amount you need to repay.
- The date by which you are required to repay the minimum amount or more.
To repay your credit card debt, you need to pay the minimum repayment amount or more (even the entire amount in full, if this option is available to you) before or on the repayment date provided by your lender.
As long as your spending does not exceed your approved credit limit, and you are keeping up with your monthly repayments, you can continue using your card as much as you need.
If you miss a repayment, your credit card provider could apply charges or fees to the outstanding balance on your card. If you’re struggling to make a repayment, contact your lender and they may be able to provide an extension.
Check your eligibility and start comparing credit cards to borrow £200
If you need to borrow £200 today and are looking for a flexible way to achieve this, a credit card could be the ideal solution.
To get started, just head over to our credit card finder tool and we’ll help you compare card providers so you can find the best one for your needs.