Warning! Stop! Please do not take out short term loans without reading this article. There are plenty of good reasons to use short term loans, but pitfalls as well. We will go through all of the good reasons as well as problems associated with short term loans in the UK and try to find the best rates and deals online to help you.
Short term loans have been on the rise for many years now and typically range from 3 months up to 18 months depending on what deal is agreed with a lender. They differ from payday loans in the sense that its expected a payday loan will be repaid far more quickly. There’s certainly merits to making quicker repayments. For a start you’ll reduce the overall amount of interest that you pay which is always going to be good for your finances. The most important thing to remember with any loan, not just a short term loan, is that you want to make repayments comfortably and easily without stretching yourself, especially if it’s a bad credit loan interest rate. This is especially important to maintaining a comfortable life and should be factored into any credit decision you choose to take when you borrow money.
Where can you find short term loans in the UK?
One way to find short term loans in the UK is to search the internet. A quick search of “short term loans UK” will bring you up all the information you need including this page to make an informed decision on your next credit move. As UK residents we are allowed to use short term loans if we are over the ages of 18 and have a UK residence. Assuming we have a bank account and a job with income we will be able to apply for this type of loan and be carefully considered. One thing to watch out for here is the costs associated with this type of loan.
Normally the APR can be quite significant and it always pays to carefully check the offer that you receive from the lenders. That also goes for any credit for that matter though and make sure that if you take out finance you really need it and that it benefits and not hinders you.
What are the best short term loan interest rates online?
If you’re looking for the best short term loans with excellent interest rates then it will be a case of testing the water so to speak. The only way to know what offers you’ll receive is to ensure that you let the lender have your application with as much detail and current financial circumstance as possible. This will enable the lenders to offer the best possible deal and hopefully a short term loan with low interest rates – this is essentially how you find the best payday loan as well. Always remember that interest on this type of loan will be more expensive than typical lending avenues. This is because those looking for finance at the bank typically have an exemplary credit rating as they know that’s required to get finance.
A look at cheap short term loans with low apr and interest
The first thing to know about short term loans is that that they can have pretty decent APR. While I wouldn’t call this low APR or a cheap loan when compared with other financial products on the market, in terms of availability to those with less than perfect credit however, they may solve a short term problem. Finding low APR short term loans largely relies on your own credit score.
The price of the APR can be lower in this situation that someone that has got bad credit for example. Always carefully check any loan offers you get to ensure that you’re completely happy with the offer and that the terms suit you. If they don’t or you are not sure, by all means contact the lender to discuss, but also remember, you have the right to refuse any loan offer and you don’t even need any reason.
How can I find instant or quick short term?
Finding a quick or event instant short term loan will rely on your credit score to some extent. Lenders now have an automatic system in place and anyone that can pass the automated software that is sometimes known as ‘auto decisioning’ will be able to get their loan application approved instantly. As I previously mentioned, this type of quick loan relies on your credit score passing the automated system.
In this situation you can then review any offers you receive and accept them or decline if you feel that the interest rate has not been as you would have hoped or expected – this is the closest you’ll get to an instant short term loan and is generally the only way to get instant loans, though this isn’t instant in the sense that you need to approve the loan but it’s pretty much a quick loan and can all be settled in as little as 15 minutes this way.
Compare short term loans – the interest rate carefully needs looking at
When we compare short term loans it’s very interesting to see just how the amount of interest can vary. You will notice that some figures result in less overall repaid and yet the same amount borrowed. This is down to interest rate and length of time the loan is borrowed for so well worth a close look and this offers an opportunity to understand and compare short term loans.
Compare short term loans
Length borrowed for
Monthly APR example Representative 1266%
The first thing you notice when looking at the table is the same amount of money borrowed twice. You’re probably thinking why bother? Well the example is to show just how quickly interest can mount up.
Take the £500 loan example:
3 months you repay £757 in total
5 months you repay £910 in total.
You borrow exactly the same amount of money but because you take longer to pay it back, it increases the amount of interest on the loan considerably. The key to using short term, and payday loans in general is keep the amount of time you borrow the money for to an absolute minimum and repay what you can afford promptly. This is how you take advantage of short term loans, and not taken advantage of yourself. So bear this useful information in mind, it’s the perfect way to compare short term loans and understand the options and alternatives that are available in terms of loan lengths and costs.
Can I apply for small loans?
Small short term loans are almost the perfect example of use. You want a small loan that will tide you over until the next payday when you can make prompt repayment over a short time to help keep the costs to an absolute minimum. A small loan could be anything from £50 up to £5000 and it completely depends on your finances as to how much you can get. If you’re a high earner then you’ll be able to loan considerably more than someone on minimum wage for example. But in terms of applying, yes you absolutely can. All you need to do is fill out a form online and then your information can be sent to dozens of interested lenders and they will then be able to workout how much money you can borrow from a small short term loan.
I want easy repayment cash loans from direct lenders
Finding easy repayment short term loans in this modern age is easy. So many direct lenders will be more than happy to look at payment terms with you as they will want you to be able to repay easily. And because there are so many lenders you are sure to find one that will be interested in helping you organise an easy repayment short term loan. Getting cash loans has become far more simple by process though that’s not necessarily a good thing. Many people take out a short term cash loan without considering the repercussions of borrowing money and that’s dangerous. Always make sure that you can afford the short term cash loan you take and that it will not put you into financial difficulty in any way.
Short term loans for students
Students have plenty of options when it comes to finance. Short term student loans is one option, and there are many other loans for students. You can even get student payday loans too. The one thing to remember is the cost. This type of credit should be repaid as promptly as possible so that the interest rate is less of an issue. But, before you go looking for this type of loan, have you considered that the government in some cases provides extra help for students? Just take a look at the extra government help you can get by following this link.
It may mean that you don’t even need to borrow money using this method of finance. It would be far less stressful to find finance without all the extra interest. Students just starting out in the world of credit can make mistakes financially that take years to fix and can even result in not being able to get mortgages later down the road. So be careful and make sure whatever money you borrow, is affordable and can be repaid with no stress.
Do they approve short term loans with bad credit?
Yes there are loans for bad credit but not in the literal sense. Your credit score and situation can afford the odd blip but you can’t have a recent history of non repayment and difficulty. It would not be possible for the lender to be sure you can afford the loan and it would be irresponsible lending to give a short term loan with bad credit to someone knowingly putting them in trouble. If however in the past you had the odd blip and your recent credit history is far clearer then you have a fair chance of your application being considered assuming that you meet the basic criteria of being over 18 and have a paying job. You then just need a bank account and a UK residence and you’ll be considered for short term loans with bad credit.
What can I do if I get into short term debt?
Do not let the problem get worse. Contact the lender straight away and let them know. All lenders should be ready and willing to listen and be treated fairly. This is your right provided by the Financial Conduct Authority. If for whatever reason you cannot get help from the lender, don’t worry. You can get help and advice from stepchange.org who can help you with short term loan debt. Follow the link provided: https://www.stepchange.org/debt-info/short-term-loan-debt.aspx. This is a great place to start with debt help and this web page will be the beginning of you getting back on your feet financially.