Borrowing money safely

Finding legitimate lenders and regulated ways to borrow money protects your rights for the future.

When you're facing financial difficulties, it can be tempting to borrow money quickly – especially from someone you know or someone recommended by a friend. But it's important to make sure you're borrowing in a way that protects your rights, your safety, and your future.

Student leaning on elbow looking at a PC

Safe ways to borrow money

If you need to borrow money, it’s important to choose a safe and responsible option.

Use a registered lender

Always borrow from lenders who are authorised by the Financial Conduct Authority (FCA). You can check if a lender is registered through the Financial Services Register.

Get everything in writing

A legitimate lender will provide clear paperwork outlining the loan amount, interest rate, repayment schedule and any fees.

Understand the terms

Make sure you fully understand how much you’ll repay in total and when payments are due.

Seek support from trusted services

Many universities, including ours, offer financial support and advice. Our Student Money Service can help you explore your options and even provide emergency funds.

Buy now pay later schemes

Buy now pay later (BNPL) schemes such as Klarna, Clearpay and others are becoming a more popular way to borrow money. They allow you to make a purchase without paying the full price upfront, delaying repayment for 30 days or spreading the cost over a longer period.

It might feel like a simple way to spread the cost, but it’s still borrowing and it’s important to stay in control. If you do use these schemes, you should make sure that you:

understand what you’re agreeing to
can afford what you’re paying for
know how and when you’re going to pay it back
keep track of what you owe by setting reminders, and
stay on top of your repayments.

If you miss a repayment there is usually a charge and, if you’re unable to pay, your debt may be passed to debt collectors which can negatively affect your credit score.

These schemes aren’t regulated (yet). BNPL providers aren’t currently overseen by the Financial Conduct Authority (FCA), so you don’t get the same protections as you would with other types of credit.

Be cautious of informal or unregulated lending

Borrowing from someone in your community, a friend of a friend, or someone who offers quick cash without paperwork might seem convenient – but it can be risky. These lenders, often called illegal money lenders or loan sharks, may:

offer cash loans without any formal agreement
charge extremely high interest rates
demand fast repayment under pressure
use threats, intimidation, or even violence
take personal documents like your passport or bank card
operate without FCA authorisation.

If any of this sounds familiar, you’re not alone and help is available.

Get help and stay safe

If you think you or someone you know may be involved with a loan shark, it’s important to report it. You can do this safely and anonymously through Stop Loan Sharks. They offer confidential support and guidance every step of the way.

Student Money Service

You don’t have to face financial hardship alone. Reach out to the university’s Student Money Service for advice, support, and safe borrowing options tailored to your situation.

Student Money Service