This, again, depends on your viability as a borrower, or at least how the bank views you as a borrower

As with all types of credit, there is no one size fits all answer to the question of how much money one will be able to borrow. This means that if the bank or building society thinks that you are going to be a higher risk than someone else, they will charge you a higher rate of interest. For this reason, it is very important that you do what you can to make your bank or building society view you as somebody who can be relied upon to make your repayments on time and in full. One of the best ways to do this is to give them some form of proof of earning. If you have a steady income and your loan repayments are clearly not going to be too difficult to manage due to the amount that you get paid, then it is more likely that your bank or building society will approve you for the loan. There is also a higher chance that they will give you a lower level of interest for it as well.

If you decide that this is the type of loan that is best suited to your own personal situation, then all you need to do next is apply for the credit from the bank or building society or your choice. However, it may be difficult to find such an organisation that is willing to offer a set up as flexible as that. if you start to find that this is the case, then you may want to consider looking into peer to peer lending. Peer to peer lending is a relatively new phenomenon that allows individuals who want to borrow money to be put into touch with individuals who are willing to lend money. This means that you can have a more personal level of contact with the lender and it can often be much cheaper than borrowing through a high street bank. One example of the interest rates that can be done through peer to peer lending is that you can borrow ?7,500 for four years at a rate of only 3.05%. However, if you wish to pay back the loan before the four years have finished, you are fully entitled to contact the lender and inform them that you wish to pay back the loan in full. Unlike with many banks and building societies, these loans can be paid back early without having to be subject to any penalty charges for doing so. At banks and building societies, it is entirely plausible that you could be charged up to one or two months worth of interest as a fine for doing so.

For more information about credit cards, current accounts or loans, please head to our guides section where we offer our users free and impartial advice on all forms of financial product from car insurance to mortgages and everything in between.

The big reason that anyone would choose to go for a flexible loan instead of simply using an interest free overdraft or a 0% interest credit card, is the fact that you can borrow much larger sums of money when you use this form of credit

Here at Money Expert we also offer a free and impartial loan price comparison service that is designed to help our users make informed decisions about any products that they are thinking of purchasing. Regularly updated by our industry experts, this price comparison tool is a great way to get a feel for what’s on the market right now and also to see if you could be saving money by looking elsewhere.

The next thing you should be thinking about is whether or not you actually need to borrow cash. What this means is that you should consider whether or not you think that you could be fulfilling the same objective through another form of credit. For example, are you buying a product of some sort? If so, you should consider whether or not you could potentially buy that item on a credit card. If this is the case then you immediately open up a few different routes that you could be taking. Getting a cash loan is not always the right choice so think long and hard about whether or not it is completely necessary before you do it. You will often find that cash loans are actually the most expensive forms of credit and therefore are often not the most advisable route to take. You should make sure that you check with whichever business you are aiming at purchasing something, to see whether or not they take credit cards. It is often the case that car dealerships will not accept credit cards but other purchases for things such as furniture, will allow you to do so.

At the time of writing this article, there were credit cards on the market that offered as much as 27 months with 0% interest. This means that you can borrow money for over two years absolutely free!

Option 2: Get an interest-free overdraft

Getting this form of credit is a bit easier than getting a credit card but still requires a little bit of thought. The first thing that you should do is search around for banks or building societies that offer interest free overdrafts to new customers. When you do this you should look into how much they will charge you if you were to still be overdrawn at the end of the introductory period. This is important because if anything goes wrong or your repayment doesn’t go to plan then this is the amount that you will then be charged. The next thing that you should consider is how long they are willing to offer your an interest free overdraft for. Unlike with other forms of credit, such as personal loans, interest free overdrafts are better when they are longer. This is because the longer that the bank or building society is willing to lend you the money for without interest, the longer that you have to pay the money back. The final thing that you should try and find out before you apply for one of these accounts is how much they are willing to let you have as your overdraft limit.