Short term loans are very popular in the UK, offering a simple and fast way to cover a gap in household or personal budgets. Whether you are having a tough month in terms of budgeting, or you are finding yourself facing an unexpected expense, there are many reasons why you should consider a short term loan to help bridge the gap. There are a number of different options available when it comes to these loans, including payday loans, installment loans, and guarantor loans.
Different types of short term loans
Payday Loans
These are the shortest term loans available, usually borrowed for around a month. Small cash sums can be used to tide you over until your next payday, At this point you pay back the loan. These loans are ideal for brief term borrowing when you do not want to worry about multiple repayments over a long period. There are numerous lenders should you decide to compare loan offers before committing.
Instalment Loans
For short term borrowing over a slightly longer period, instalment loans are ideal. You pay back sums of up to £1000 and upwards over a period of time that works with your finances.
Why You Should Consider a Short Term Loan – Doorstep Loans
If you do not have a perfect credit score then doorstep loans allow you to borrow £100 and upwards. You do not need a bank account as the lender’s agent will bring the cash to you. Then they revisit each week to collect a small repayment.
Why You Should Consider a Short Term Loan – Reasons to consider a short term loan
The options above are just three of the short term loan solutions available to anyone. It suits those who does not want to commit to borrowing over several years. But what are the advantages to applying for a short term loan?
Short term loans are unsecured
As they are usually for smaller sums, and borrowed over fewer months or years, they tend to be unsecured. Thus, you do not need an asset. Such as a house or car, Without them you can still take out a short-term loan. Instead, lenders will decide whether you are eligible to borrow based on factors such as your credit score or whether you have someone who will guarantee the loan.
Short term loans are available quickly
One of the defining features of short-term loans is that you can borrow them fast – sometimes even on the same day or within 24 hours. This makes financing, such as payday loans, ideal if you find yourself in a situation where you need cash fast.
There are no longer term commitments with this type of loan
With short term loans you only need to focus on the immediate future. This is because the loan is paid off within a much shorter 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 with all of life going on around. With short term loan this is not an issue. Repayment terms can be as short as a month, leaving you free to repay and move on.
You can use short term loans for anything
Most people use short term loans to help bridge a gap in monthly finances. Or to pay for something urgent or to cover an unexpected cost. The great thing about short term loans is you can use them for whatever you need.
