A short-term loan is different from a payday loan, the former is repaid over three to six months on a monthly basis while the latter is repaid all at once. It’s also important to note that a short-term loan isn’t secured, so there is no need to put an asset down as collateral.
Money surprises crop up all the time – the washing machine has broken down, the car has failed its MOT, the fridge is on the blink – not everyone has money set aside for a rainy day, sadly, that’s the world we live in. That doesn’t mean you can’t get the money you need, though, short-term loans are available.
Which Loan Is Right For Me?
There are plenty of lenders on the market, but the first thing you need to do is ensure you are working with a lender who is responsible and FCA authorized. Your decision may be swayed by the APR on offer, as well as any additional fees and whether the lender is offering a fixed interest rate. There are plenty of loans to choose from and each lender will provide a list of options for you to choose from as well when it comes to terms and conditions.
What If I Have Bad Credit?
Bad credit isn’t ideal, it can be a massive blow to your wish to borrow cash, however, online lenders don’t have the same strict borrowing guidelines as banks and building societies do. If you have poor credit you will still be able to secure a short-term loan, provided you have a regular source of income with which to repay it. If you’re hoping for short term loans no credit check then there is bad news, there are no responsible lenders who can skip checking your credit score, but that doesn’t automatically disqualify you, so don’t panic. There are specialized lenders who deal in loans for people with bad credit, so don’t panic about a credit check.
Not to mention the fact that if you take out a short-term loan and repay it as agreed it will give your credit score a boost – though that should not be the main reason you do so. While you can check your credit score as often as you wish (every day if you were so inclined) without affecting your credit score, multiple applications for credit do impact it. This all shows up on your credit report, as does missed payments.
The Best Online Loans
When searching for short term loans bad credit it’s important that you shop around. There are plenty of lenders online, so do your research and find the best APR possible. Even a single percentage point can make a big difference. When you apply for your loan ensure you fill out the application honestly and accurately – don’t inflate your income to get a higher loan. In fact, borrow the least amount of money that you need. When you go too big it likely raises red flags and it also makes repayment more difficult. You don’t want to compromise your credit further by borrowing too much.
There are new FCA authorized lenders appearing every day and many of them won’t appear on the comparison sites but offer lower APR than the most well-known sites – so be thorough in your research. Before you go on your hunt for short-term loans, make sure you have taken a good look at your finances to ensure you can afford their repayments. Short term loans are a great way to rebuild your credit after a difficult financial period, from direct lenders; so don’t let the opportunity pass you by.