Short Term Loans Explained
Short term loans have many different names, but they all essentially mean the same thing. Any loan under £2,000, taken for a short period of time, falls under the category ‘short term loan’. Short term loan lenders process and grant loans much quick than the banks. Due to this, help is provided if you have a particularly difficult month, financially. The ‘APR’ percentage is usually higher than a loan from the bank, and this is for a number of reasons. Short term loans are fast, efficient and convenient, and all of these reasons are factored into the interest figures. From the lender’s perspective, short term loans are high risk. As a consequence, the APR percentage is pretty high. Alternatively, you can apply via the banks, but their policies are much stricter. Furthermore, most banks do any offer loans under £1000.
Advice: When to take out a short term loan, and why.
Short term loans are there to step in as a ‘life saver’ when unexpected emergencies arise. Reacting faster to certain emergencies is crucial, depending on the circumstances. Short term loans for bad credit applicants are very useful if you need cash fast and you don’t have a high credit rating. Bare in mind though, you will spend more on interest, and is not a long-term solution to financial difficulties.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed) APR rates range from 45.3% APR to 1575% Max APR. Your APR rate will be based on your circumstances.
Can I get a short term loan, today?
Securing loans today for people on benefits is not always guaranteed, there is a process which the lenders follow that determines whether you are deemed too much of a risk, or you’re eligible for a short term loan. However, the chances are, if you’re accepted, the loan will be in your bank account within the hour.
Can Loanline secure ‘Instant short term loans’?
Many lenders and brokers will offer you instant short term loans. However, receiving a decision from certain lenders can take up to 24 hours.
How does Loanline work?
Loanline will search our panel of lenders once you have completed the application form. You may notice the page loading for up to a couple of minutes once you have submitted your application. This does not mean the page has crashed. The lender, on the other hand, may take longer when it comes to granting your application for a short term loan. Further details may be requested from the lender, once you have been redirected to their website. Unfortunately, we have no control over any additional questions from the lender.
The dangers of short term loans
Short term loans should not be used as a mean of long-term financial solutions. Anyone struggling with money problems, should contact the Money Advice Service.