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Short Term Loans
If your need for money is small but urgent and you dread the thought of carrying a loan burden for many years, short-term loans are probably the ideal financial options to consider. Think of minor car and home repairs and unexpected bills. You really don’t need to take out tens of thousands of pounds worth of finances to address them right? What you need is a loan that can give you just the right amount and can be paid back in a shorter duration so you don’t have to stress yourself out from a lifetime of monthly payments. What you therefore need is a short-term loan.
What is A Short Term Loan?
Short-term loans are typically offered over a period ranging from one to three months or less than a year with amounts not exceeding £3,000. They are designed for borrowers looking to take out a loan that is quick and highly accessible to cover emergency cash needs.
The Benefits of Short Terms Loans
Short term loans are popular financial options in the UK because they cater a specific financial need among people of all walks of life and that need is emergency funding. No matter how hard we plan our finances, sometimes unforeseen expenses come out of the blue and short-term credit can be a practical solution to such problems. They also offer a lot of great advantages such as:
1.) Fast and Easy Application
As the loan only has a maximum duration of 12 months, the amount that you can obtain for is usually smaller compared to long-term options. Because of this, the application process is fast and lenient. With a renowned broker like Pickaloan, your application is processed within minutes and an approval decision reached on the same day you made your application. You can also take out the loan purely online or by phone making them the fastest and easiest means to get approved for money that you need now.
2.) Instant Access to Money
Aside from fast and easy application, the transfer of funds is also very quick. Once your application is approved, funding is released immediately so you can use the money to cover those emergency expenses. Compared to traditional loans from banks that could take up to six months to process even after an approval, you can have the money deposited into your bank account on the same day you made your application or in the next business day at the latest.
3.) Less restrictions
Not only is the application and approval process fast, qualifying for a short-term loan is also seamless. This is because you are not borrowing an enormous amount which is also an enormous risk for the lender. With lesser risk, lenders put softer eligibility criteria to borrowers. Normally, as long as you are employed and have a stable income, qualifying for the loan is almost guaranteed.
Short Term Loans No Credit Check
Generally, lenders will conduct a credit check because they need to confirm your identity so they will know that you really are who you say you are. They also use it to determine whether or not you are bankrupt or an IVA. However, they will not base their lending decision on a score reported on your credit history. Credit rating, though, will affect how much you can borrow and for how long since lenders won’t go all out on you if you haven’t proven that you are a responsible borrower. If you have a good credit rating, you normally will have access to larger amounts for better terms.
Short Term Loans for Bad Credit
Because short-term loan lenders won’t base their lending decision on credit history, people with bad credit are welcome to avail of a loan as long as they meet the basic requirements. Normally, lenders are only concerned on how you can pay the money back in full on the agreed date. They will see you for who you are now and not for who you were a year or two ago.
With banks and other traditional financing institutions, a bad credit is an automatic “No”. While you are not guaranteed to be accepted if you have bad credit, it’s fair to say that short-term loan providers are more open-minded and lenient to potential borrowers.
A Good Opportunity with Short Term Loans Bad Credit
If you have a bad credit, short term loans for bad credit will not only help you out in emergency situations but will also help you build your credit score back to healthy numbers. You can even use it specifically for the reason of improving your credit score if you prefer. You can simply take out short-term loans for bad credit with a duration of a month or two then make the proper payments on time improving your credit score dramatically and unlocking more loan options for lower interest rates.
Getting Help From a Guarantor
If you find it difficult to get the loan deal that you are comfortable with because of your bad credit rating, a good solution would be to find a guarantor to “guarantee” your loan. This person will agree to make any required repayments in the event that you miss or default on your debt repayment. It could be much easier for you to get the loan that you need because of your guarantor who would share equal responsibility for paying the loan. In the eyes of lenders, this is a smaller risk and approving your loan request would be easier even if you have bad credit. The lender will have both the borrowers and the guarantor’s bank details so repayments can be made as and when they are due, this gives the lender reassurance that they will get the finances back allowing a better acceptance rate for those with a poor credit history or better rates of interest to others.
What is the Best Short Term Option?
There are different types of short-term loans that you can avail for with each having its own unique terms and agreements as well as borrowing amounts and durations. The most popular options readily available among pickaloan.co.uk include:
- Personal Loans
- Payday Loans
- Guarantor Loans
- Logbook Loans
- Doorstep Loans
So which is the best option? That would depend entirely on your needs and present circumstances. If you want the quickest and easiest loan to obtain, for instance, payday loans will serve you best. They are offered in smaller amounts, however, and should be paid back normally on your next payday. If you have a vehicle that you can comfortably present as collateral or security against your loan so you can avail for bigger amounts, then logbook loans will serve you best.
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