Moolr.co.uk | Short term loans

Reasons To Consider A Short Term Loan

Short term loans are very popular in the UK. Lenders offer a simple and quick way to cover a gap in household or personal budgets. They can help whether you’re having a tight month in terms of budgeting, or you’re finding yourself facing an unexpected expense. There are many reasons to think about short term financing. A loan can help bridge the gap. There are a number of different options available when it comes to these loans. These including short term loans, instalment loans and guarantor loans. Moolr took a look at reasons to consider a short term loan.

Short Term Loans Are Unsecured

Such loans are usually for smaller sums. You borrow over fewer months or years, so they tend to be unsecured. Thus, you do not need an asset, such as a house or car to be able to borrow a short term loan. Instead, a decision is made about whether you’re eligible to borrow based on certain factors. These factors include your credit score or whether you have someone who is willing to guarantee the loan. Other things to consider is how much you wish to borrow and over how long a period.

Get Your Funds Quickly

A key feature of short term loans is the simple and fast process. If a lender accepts you for a loan, they should send the money quickly, sometimes even on the same day or within 24 hours. This makes financing, such as short term loans, ideal if you find yourself in a situation where you need cash fast.

No Commitment Loans

With short term loans you need only focus on the immediate future. This is because the loan is paid off within a short space of time. Many people find it intimidating to commit to borrowing over a period of many years. They worry about making the payments and managing the loan. They worry about the debt hanging over them for so long. With short term loans this isn’t an issue as repayment terms can be as short as a month. They leave you free to repay and move on.

Cost

The longer you borrow for, the more interest you will pay. Short term loans offer a simple way to borrow funds but pay it back quickly. There are fewer repayment periods. Also, as the loan is unsecured, your major assets will never be at risk should you struggle with repayments at any point. Of course interest rates will be higher for shorter loans. It is important to realise that an APR does not tell the whole story if your loan is less than a year. 

Flexible Uses

Most people use short term loans to help bridge a gap in monthly finances, to pay for something urgent or to cover an unexpected cost but the great thing about short term loans is you can use them for whatever you need. This could be a domestic emergency, unpaid bill, or urgent car repair. They should not be used for treats, or non-essential costs.

Choice 

The three types of loans mentioned above are just some of the short term loans on offer and illustrate how this type of lending caters to all needs. Other options include doorstep loans, where your borrowing and repayment is all managed face to face via a loan agent – repayment could be as little as three months. Whether you have a bad credit score, you’re a first time borrower, you don’t have a bank account or you don’t want to have to deal with mainstream lenders, there are plenty of short term loans on offer to suit your needs.

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