What are quick short term loans used for?
While there are many reasons why someone might want to access finance, much of the time, it’s just a small and unexpected expense that you can’t cover with your savings or the ready cash you have. If an appliance breaks down, you get hit with an unexpected charge or fine, your car loses a tyre, or you realise you can’t quite pay the water bill, short term loans can help. Due to their nature, a quick decision and fast payout are essential, something that many high street lenders can’t match. This is where short term loan companies shine. Short term loans are that little extra sticking plaster that can make a disastrous event more manageable for a stressed and overstretched family trying to make ends meet.
How can short term loans help me?
There are hundreds of places to get traditional finance, such as high street banks and other direct lenders, but it’s often a tricky and lengthy process if you’re looking for finance from those places. We understand that if you’re looking for a quick fix to bridge a gap, traditional loan companies can often be too slow to decide on your loan. You also don’t want to be paying more money for the loan than you need to. For example, you can’t be without hot water for days while the bank works out whether it wants to lend you money to fix the boiler, and you can’t wait for Monday before you get the money you need to get your car fixed, so you’re often out of luck with traditional lenders. That’s where short term loans come in. Because you’re not trying to borrow very much money, and because you’re not borrowing against the value of an asset, short term loans online can be offered to you very quickly. You can check if you’re eligible for a short term loan in as little as a few minutes by filling in our loan application. Once approved, the money can be in your bank account in as little as 15 minutes.
Another way short-term loans can offer a major advantage over their traditional counterparts is in the severity of the checks that the lender needs to perform to see if you are eligible. First, there’s one truth that needs to be stated: There’s no such thing as a guaranteed loan. It’s a legal requirement in the UK that every lender must perform a credit check on anyone that wants to take on finance to ensure that the amount of debt is affordable, and not everybody will pass those checks. However, not all credit checks are equal. For example, most short term loans are small enough that a ‘soft credit check is performed rather than a ‘hard’ one, which doesn’t leave a mark on your credit record.
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Can I get a quick short term loan if I have bad credit?
People with a bad credit rating, or people with no credit rating at all, such as recent immigrants or people who have just turned 18, are often concerned mostly that they won’t have access to any finance. This can be a major issue for living a normal life, as it can prevent you from accessing loans and mortgages and things like phone contracts or hire purchase agreements on cars. However, for someone with poor or insubstantial credit history, the biggest barrier to financing is the credit check, resulting in a hard ‘no’ from the lender just on that basis. That’s why it’s good that short term lenders don’t just rely on your credit rating to make their decisions. After all, you are more than just the number of your credit score.
When you apply for a short term loan with us, we do more than bring up a credit check and decide on that basis. We work with a wide range of Financial Conduct Authority authorised lenders of every size and type so that we can take a much wider view of your financial position than other lenders. As long as your income is higher than the minimum monthly amount, we stand a good chance of getting you a short term loan, even if you have a poor credit history. That said, it’s also important to be sure that you can afford the payments that you’re committing to. While many factors are taken into account by a direct lender when making lending decisions, such as your food and transport costs, your rent or mortgage and other existing loan payments, you must be honest when answering those questions to avoid getting into problem debt.
Is a short term loan right for me?
A quick short term loan can be great in an emergency, but it’s important to make sure you’re borrowing money for the right reasons and in the right way. You must be able to meet your monthly repayments on any short term loans because unpaid debts can quickly spiral into problem debt and can have a serious impact on your credit score. One way to avoid this is to have a buffer in place to pay off two instalments at once, just in case you suddenly find yourself short of cash. You can also overpay to ensure there is always one extra instalment in the bank in case you miss one, or you can set up alarms and notifications in your calendars to stop you from making a late repayment.
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It’s also good to remember that short term loans almost always attract higher interest rates than other types of instalment loans from high street lenders, which is a trade-off for them being more flexible and accessible. Short term loans are not designed for long term or repeated use. If you find yourself relying on them regularly to pay back unexpected expenses, it could be a good idea to seek advice from a debt support charity to see how you can reign in your spending.
It’s also a good idea to keep an eye out for fees that lenders can charge on your payday loan, so you can be sure you know everything that you’re paying. These fees can crop up in several areas, including but not limited to: Transfer fees for adding money to your bank account or paying off debts; Late payment fees if you end up missing payments but paying within the allowed leeway period; and Fast payment fees if you opt for the fast payment system that will allow you to receive your money faster. While none of them will be crippling, and most will be only simple administrative costs, some brokers make a point of saying that they don’t charge any fees at all so that it could make the difference between a good deal and a great deal.
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