The Beginners Guide To loans: What Are Short Term Loans
by Arina Smith Loans & Credit 12 December 2020
When struggling with your finances, it may seem like an impossible task to make ends meet every single month. However, with many of us finding unexpected bills and home repairs an expanse that we cannot afford, some will opt for a loan to help cover the cost. But what are short-term loans? In this article, we will be providing you with information on what short-term loans are.
What Are Short Term Loans?
A Short-term loan is a loan where the amount borrowed and the interest is paid back in less than a year. This loan can be as little as £50 to a total of £2,000 and it can even be higher in some cases depending on the lender. These loans are typically taken out by those that need emergency funding as the funds can be put in your account very quickly.
How Can You Find The Best Lender?
Finding the best short term loans providers doesn’t have to be a difficult process with a few quick and easy tips. By looking at the small print, the acceptance rate, and the licenses that they have, you can generate a shortlist of lenders that you believe will give you the best possible price for your chosen loan type. From there, you can then begin to narrow down which one you believe is right for you and can begin to fill out your application in the long term.
Consider Reading: A Helping Hand: Applying For Loans As Co-applicants
How Can Your Credit Score Affect Your Loan Application?
As with any loan that you may be looking to take out, it is the credit score that can influence whether or not you are deemed eligible for the money that you are looking to borrow. If you have a poor credit score then you may find you are not accepted for your chosen loan type. One of the ways that you can do this is to improve your credit score beforehand by paying off debt and checking for incorrect information within your credit score. This will then strengthen your chances of being accepted for a short-term loan when you need it.
How Can You Apply For A Short Term Loan?
If you find yourself in a financial emergency, you can apply for the short term online with a quick and easy online application. From here, you will be asked all the important information such as monthly income. From there, the background checks will be put in place by your chosen lender to determine if they can lend the finances to you. These checks are quick and easy, allowing you to have the answer and the money in your account within just a few days. When the money is in your account, you can pay off your unexpected bills and can then begin to pay it back.
With this in mind, there are several elements that you need to be aware of to ensure that you get the best possible price for the short-term loan that you need to help you out of a financial emergency.