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Short Term Loans
- Short terms loans are designed for people who want small amounts of money as fast as they can get it.
- These loans have a short lifespan, which may last for a few weeks or months.
- Due to their short life span, short term loans are approved a lot faster than other types of 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.
Short Term Loan FAQs
How much can I get from a short term loan?
These type of loans have a very short lifespan, hence, you may not be able to borrow large sums of money. However, some direct lenders may be willing to give you as much as 3000 pounds if they feel you are capable of paying back the loan when the time comes to do so.
Short term loans may not offer large amounts but we still advise that you only borrow a sum that you are capable of paying off when the loan’s due date arrives.
I have bad credit, can I still get a loan?
According to laid down regulations by the FCA, all lenders are to carry out a credit check on prospective customers before granting them loans. This means that lenders hold the right to turn down applications from people with bad credits.
While most lenders follow this rule to the letter, exceptions do exist especially when it comes to short term loans. Lenders may be able to give out loans to individuals with poor credit history if they believe they have what it takes to pay it back. But note that these type of loans attract very high-interest rates.
Do I need collateral or someone to stand for me?
No, you don’t need one. Once the lender confirms that you have a good credit history and you currently have what it takes to pay the loan back, your application will be granted without delay. Collaterals and guarantors may be needed when you set out to get a long term loan that involves large sums of money.
Can I get multiple loans?
There is a chance that your multiple loan request will be accepted if you have a very good credit history and the lender is also willing. But unless you have genuine reasons to do so, taking up another loan when you are yet to pay up for the last one is usually a bad idea.
What happens if I fail to pay back the loan amount?
With most lenders, extra charges will be added to the high-interest rate that you already have to deal with. If you don’t manage the situation properly, you may end up hurting your credit scores.
So, once you sense that you may not be able to pay back the loan on its due date, reach out to your lender and try to come up with a new plan.
How does it work?
Short term loans are designed for people looking for a small cash advance to solve their urgent money problems. This is could be for an urgent house repair or payment to fix your faulty car.
If you are sure that a short term loan will fix your current financial emergency, all you need to do is to fill an online application form for short term loans and a lender will get to you in the shortest possible time. Since all of the application processes is online, you may receive the loan amount in your bank account within 24 hours if your application is successful.
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