Short-term loans are the loans you run to when you want a small sum of cash without the hassle of long term debt.
Short-term loans are simple, affordable and convenient as they can be used for just about anything and are easy to qualify for and even easier to apply for.
Use your short-term loan wisely
Short-term loans are mostly used for emergencies since they offer a limited amount of money. Furthermore, it is advisable that you do not apply for a short-term loan when you want to pay off other debts.
Although short-term loans offer a small amount, they are powerful enough to affect your credit score, either positively or negatively. You can even use this loan to improve your credit rating by making your regular repayments on time and in full until the loan is completely repaid.
Why should you apply for a short-term loan?
We need money daily to get us through life. Be it for food and bills or for gifts and travel. As an individual, it is a good idea to always keep cash or some form of savings for the unknown. However, not everyone manages to have cash with them throughout the month and that’s where short-term loan can be helpful.
Short-term loans give you the freedom of borrowing the exact amount of money you need at that particular time, and you will be able to pay it off in a few weeks or a few months. Rather than taking a long-term loan for a temporary situation you can take out a short term loan that does not require a long term commitment.
The benefits of short-term loans
Short-term loans have become popular over the years because they are easily accessible. They offer unique benefits that continue to make them an excellent option for getting quick cash to tide you over when you are in a financial squeeze.
- All short-term loans often have a smooth, straightforward loan application process that can be completed online
- Usually, there is no stressful, tedious paperwork to fill up
- Most loans need collateral, but with short-term loans, there is no need for collateral or asset to be put up against the loan
- All short-term loans offer small amounts ranging from £100 to £1000 depending on the lender
- Short-term loan lenders usually do not care about credit scores and will be willing to offer bad credit loans
- All short-term loans are done online which then results in quick payouts. You usually receive your funds the same day
Where can you get a short-term loan in the UK?
Short-term loans are easily found. They are offered everywhere. However, whenever you take out a short-term loan, make sure that you and your lender sign an agreement that will protect both of you. You should carefully review this agreement as it will provide you with all the necessary details pertaining to your loan and it’s T’s & C’s.
You can apply for a short-term loan from various online lenders
Online lenders are highly competitive. When you look for a loan online, you can find the best offer that is accompanied by greater benefits. However, most online lenders offer loans at higher interest rates than banks and traditional lenders. Additionally before getting carried away by the benefits, make sure that the lender is licensed and registered.
Family & close friends can also help with short-term loans
Although this may be the simplest and cheapest option since most of the times there are no rates and charges involved, it may prove to be a complicated issue. It is risky. Getting a loan from someone you are close to can affect your relationship. Some circumstances may lead you to fall behind on your repayments, and it might happen that the person who loaned the money to you was also looking forward to receiving the money. Always borrow from family and friends cautiously.
Traditional banks also offer short-term loans
Traditional banks always do things in a set manner and whenever they give out loans and they need assurance that you will be able to repay it. Some traditional lenders offer short-term loans and these can be either secured or unsecured. The disadvantage with these lenders is that they require a good credit rating, dispite one’s ability to make the loan repayments.
How do you apply for a short-term loan in the UK
Short-term loans have the easiest and simplest application forms. When you apply for a loan online, you can simply visit the lender’s website to complete the short-term loan online application.
You’re also required to attach proof that you will be able to repay the loan, such as attaching your paycheck stubs or bank statements to prove income and expenses.
Most importantly you are required to fill in all your personal details and after you’ve been approved for a short-term loan, you can fill out and sign the loan agreement form.
This loan agreement form can be signed digitally online so you do not need to worry about printing and scanning. Lastly, your money will get credited immediately or within 24 hours after your loan application is approved.
Short-term loan eligibility requirements
When it comes to requirements, each lender has its own set of rules and criteria that borrowers must meet before they can consider their applications. However, there are also general requirements that cut across all lenders that you need to meet before applying for a loan.
- Firstly, you should be a UK citizen
- Proof of your income, if the loan is for a business you can attach your business bank statements.
- Have a UK bank account.
- Own a valid cell phone number.
If you’re looking for a short-term loan you can use a loan comparison site to find your ideal loan and ideal loan provider. You can compare using interest rates and fees, loan terms on offer, loan amounts available as well as the loan comparison rates which include the total cost of a loan.