Short Term Loans

Short term loans are classified as loans ranging from 1 to 3 months borrowing amounts from £100 to £3,000. Many lenders will extend these terms up to 12 months making the payment schedule easier for the customer.

These short term loans are an alternative to the much maligned Short term loans, which offer loans up to £1,000 for up to 31 days. The short lending time period on Short term loans have meant many customers default on payment, offering longer term periods means that people pay less money per month in interest.

How do Short Term Loans work?

Short Term Loans are, as the name suggests, for short term borrowing; unlike personal loans or mortgages that are paid back over years. Due to the smaller principal loan amount of up to £3,000, lenders will loan the money based on set criteria and your credit score. This is different to some other forms of personal lending where collateral, usually your home if you are a homeowner, must be provided to secure the loan amount. It is up to the borrower to pay back on time or incur fees and penalties, due to there not being any collateral securing the loan. The penalties for not meeting repayments may be expensive and could affect your credit rating.

What can I use a Short Term Loans for?

Short Term Loans can be helpful when a financial emergency arises and a cash injection is required to fix the problem. These ‘emergencies’ could range from a broken boiler to fixing or replacing parts of the car, both can be reasonably expensive and could leave you short at the end of the month.

In these situations, finding a short-term loan could alleviate part of, or the entire financial burden, reducing stress caused if you were to fall short.

As previously stated it can often help to be able to spread the payments of the loan over the course of a few months. Unlike with Short term loans where you borrow and pay back the entire loan when you get paid, you can pay back smaller amounts each month so you aren’t left short of money the following month.

Why use UK Loans to get a Short Term Loan?

UK Loans is in an experienced and impartial position to be able to offer you the chance to make one application and apply to multiple lenders. We show your application to the cheapest lenders first therefore finding the cheapest loan available to you. Saving you the time and energy of multiple applications and searching for the best value loans.

UK Loans also offers a loan comparison page, providing you with all the details needed to make an informed decision on which short term loans is best for you.

 

Before taking out any form of credit always make sure you can afford the repayments, as failure to pay the lender back on time could result in extra fees being added to the repayment cost. If you find yourself needing help here are a few sites that could help with your situations.

http://www.stepchange.org/

https://www.nationaldebtline.org

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