Short term loans play a vital role in times of instant payment. These can help you in several ways as if you have to pay a bill or your car’s investment. It is pretty affordable for everyone.
What is Short Term Loan?
Short term loans are like borrowers offered by the financial product. It has the amount between £100 and £1,000 or £1,001 and £5,000. If the amount is between £100 and £1,000 then, the time limit is about three, six, and twelve months. And if the amount is £1,001 and £5,000 then, the time limit is gone over a time of three months or three years.
Is short term loan available on the bad credit history?
You can take a Short term loan based on bad credit history. The providers go through your credit history before lending a loan to you. Financial Conduct Authority (FCA) makes the credit report to be clear and also needs to know the purpose for it on the application form.
Is payday loan as same as short term loan?
Short term loans are quite different from payday loans and a perfect decision to make. In payday loans, you have to pay the amount in one set with a lot of interest. While talking about the short term loans, you have monthly installments with also high interest to pay.
How to contact for a short term loan?
Short term loans are available through a lender or a broker. There is a risky chance to contact a lender directly through their websites and fill an application form. A lender will search your hard credit history through FCA, and that gives a bad result. On the other hand, contacting through a broker is not risky at all, and there is an 80% chance that a lender will give you the money after searching through your soft and hard credit history. But sometimes the broker is not available for the deals.
Am I eligible for the short term loan?
You are eligible for this loan only if you are 18 or above this age. In addition to this,
- You should have a monthly income.
- You should have a UK bank account with a debit card. A lender needs this information for the payment of installments.
- You should have an updated mobile phone.
- You should have an updated email account.
- At last, you should earn a minimum amount of £750 per month.
Does short term loans have high interest?
Interest costs on loan according to the personal criteria of the customer. A lender makes the interest very high that the customer will not be able to afford it. It is higher than the bank offers on their loans. There is a representative APR that showed by a lender according to law, plus a lender can offer 51% of higher of their customer on this rate.
How will I get the money?
When your application is confirmed by a lender or a broker, you will get the money directly in your account. In addition to this, some lenders collect your payment from your account monthly but others demand weekly payment. If you cannot return your payment on the time then, you will get a problem in the future before lending loans.
Short Term loans are not only option.
Short term loans are not your only option to choose. You can lend some money from your relatives and friends for some time. But after taking short term loans, make sure that you can repay the amount because it is somewhat risky for the future unexpected bills.