Moolr.co.uk | Short term loans

Short Term Loans Explained

Loans are quite simple in their structure and composition, but in a competitive market it is easy for all the offers to confuse those looking for credit. We took a lot at what is involved, with our guide: short term loans explained.

Short Term Loans Explained

Payday loans are similar to short-term loans, although they provide more flexibility. The amount you can borrow ranges from £50 to £5000, and you can pay it back over a period of 3 to 36 months.

Because of the nature of short-term loans, the application process is much faster than that of a typical loan and can be completed entirely online. The key distinctions between a typical loan and this one are the lesser amount, shorter repayment period, and faster process. They are also the fundamental traits that make online short-term loans such a popular option for consumers seeking a quick solution to a temporary problem.

While short-term loans are useful in a variety of situations, they do not offer a long-term solution to financial problems.

The Application Process

Moolr has simplified the application procedure to help you get the finances you need as soon as possible. Simply enter your personal information, and we’ll offer you the best solution for your specific situation.

The loan we choose for you will have already been compared to your needs and circumstances, so you’ll know right away if you meet the standards and can move forward. Smaller short-term loans can be in your bank in as little as ten minutes*. It may take a little longer to process larger amounts.

We follow the rules of a panel of FCA-authorized lenders to check your standing. One of the reasons we have such a high acceptance rate is because of our flexibility.

Quick Decisions

The decision on whether or not you are eligible for a short-term loan is made almost instantly. Our current acceptance rate stands at 95%. We’ll find the finest contract with the greatest rates for your specific scenario. The pace of the procedure can be dangerous at times.

It’s simple to agree to ridiculous terms if you’re in a situation where you need money right away. When you choose Payday UK, you can rest assured that you’re getting the finest offer possible. When you’re in a hurry to address an emergency, this increased piece of mind is invaluable.

Are These Loans Right For Me?

Yes, it is possible. A short-term loan could be appropriate for you if you need to borrow between £50 and £5000. Short-term loans were created to assist people who require quick access to funds. The reasons vary, but they almost always include an unexpected expense, such as a car breakdown or an urgent house repair. If this describes you, a short-term loan may be able to assist you get out of a bind.

Short-term loans aren’t a smart answer for long-term financial problems, such as debt repayment. If you’re in debt and need assistance getting back on track, there are free resources available. For further information, go to moneyadviceservice.org.uk, stepchange.org, and nationaldebtline.org.

Short Term Loans Explained – Repayments

The amount of money owed varies. You have the option of choosing a repayment period of 3 to 36 months. The length of the payback period is usually proportional to the loan’s amount. The longer the repayment period, the greater the debt. A smaller loan is usually repaid over a shorter period of time.

One of the most important factors to consider when choosing a repayment period is whether or not you can afford the payments. You don’t want to overextend yourself and find yourself in the same predicament in a few months. Choose a payback period with instalments you’re confident you’ll be able to make.

Short Term Loans Explained – Will A Loan Cost A Lot Extra?

Short-term loans have a bad reputation that dates back to when they first became popular. There were a lot of unethical and unregulated lenders who preyed on people who were in a bad situation. Direct lenders must now register with the FCA and adhere to strict ethical and regulatory criteria, ensuring that consumers are better protected. If you don’t pay back your short-term loan on time, it will cost you a lot of money.

The high APR rates reflect the loans’ short period, but if they are extended beyond the stated time, the additional interest can soon pile up. This is one of the reasons it’s critical to work with a respectable lender who is completely open about the loan’s terms.

 

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