Short term loans – loans can be classified into several categories.
There are secured and unsecured loans, including pay day loans. Secured loans require collateral or a guarantor. In some cases, a cosigner can work as the guarantor if there is no asset to use as collateral for secured loans.
Unsecured loans don’t require any collateral, but there could be other qualifying factors. With secured loans, an asset or the collateral is not the only criterion.
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An Introductory Guide to Short Term Loans
Both secured and unsecured loans can be short term or long term. Mortgages are typically long term secured loans. Student loans can be short term but they are usually long term loans. Student loans can be secured or unsecured.
Business loans and personal loans can also be short term or long term. It is the duration that determines short term loans but what is short enough is purely subjective.
Banks and financial institutions consider twelve months or twenty four months as short term loans. Five years or longer repayment periods fall in the category of long term loans.
There are lenders and borrowers that would consider five years loan terms as medium term loans. Car loans typically have three to five years terms.
Depending on your needs, a six month repayment period to three years or so would be short term loans. There are loans that require you to make one lump sum repayment. Such loans don’t fall in any of the discussed categories.
Other than the repayment periods, there is hardly any difference between a short term loan and a long term loan. It is possible to stretch the repayment periods of typical short term loans and to have a longer term.
It is also possible to reduce the repayment periods of typical long term loans and to payback much sooner.
Five year mortgage terms or pay day loans with three year terms are not unheard of. Eventually, it boils down to the exact loan that you would opt for and what your lender is willing to offer. Banks and financial institutions have the discretion to offer you the right to choose a repayment period.
With un-institutionalised lending, you get fewer options but you can still work out an exact repayment period depending on your needs.
A short term loan has the same kind of liabilities and benefits as a long term loan. Whichever type of loan you opt for, the pros and cons will apply regardless of the repayment period.
Where to Find a Short Term Loan
There is an array of lenders offering a short term loan. Your needs and eligibility will determine the short term loan you need and accordingly you would be able to choose a few lenders.
In the same vein, many lenders will become irrelevant for your quest. For instance, if you have excellent credit, if you have a very well defined purpose for the short term loan and your financial profile is desirable then you can opt for just about any bank or financial institution in the country.
Should your credit history be less than desirable, the purpose of your short term loan be vague or not anything specific that can be vetted and if your income is not as desired by the banks or financial institutions, then you could have to look for alternatives.
Fortunately, there is space for all kinds of lenders and you can find more than one option given your eligibility, needs and financial profile.
The following are just a few ways you can go about finding short term loans.
Banks and financial institutions have well defined loans. You can only opt for a loan if you have a specific purpose, from home to car, business to funding education.
If you need money for an array of reasons then you need to opt for personal loans. Personal loans can be secured or unsecured and they will require you to have a good credit score.
Personal loans usually have higher rates of interest and you may opt for a short or long term. Most personal loans are long term loans; that is you get to pay over a period of three to five years.
If you need a short term loan, typically with a three month or twelve months repayment period, then you need to opt for private lenders who work in accordance with banking regulations. Banks have short term loan options but they aren’t many.
You could opt for pay day loans, title loans or peer to peer lending networks. There are loan sharks who would offer you a short term loan, but we would not advise exploring that option at all.
These options are your only resort if you have bad credit or if your application gets rejected by most banks.
When you need a loan for the short term, it makes more sense for small loans because you don’t want to stretch the repayment period and thus end up paying more interest.
Hence, these are your more relevant options.
What to look for in Short Term Loans Online – finding a short term loan online is not a daunting challenge. However, the options available at your discretion and the sheer volumes of information will be overwhelming for many people.
It can get quite confusing for many. Unless you have any prior experience of having applied for short term loans online and perhaps having gotten approved and repaid the loan subsequently, you may find it difficult to process all the details.
Search for short term loans online
It is obvious that every lender will have its own approach for applications, approvals and customer service.
While there are certain standards, the finer elements can always vary and it is these that will make all the difference.
You need to know what you should be looking for in a short term loan product online. Here is a brief guide that can help you.
First, observe what a lender deals in primarily. There are banks and traditional financial institutions that offer short term loans online. But there would be specific purposes.
If your purpose is not listed then you need to look at alternatives. Personal loans don’t have specific purposes so you need to opt for these if you cannot vet your purchase or you don’t wish to disclose where and how you wish to use the money.
Second, factor in the eligibility or criteria to get approved. Many lenders will explicitly mention that they need a certain credit score. If so, then check if you qualify with your credit history. If not, then you need to look for payday loans or title loans.
Short term loans online lenders
Check the loan amounts, rate of interest and the details that you need to furnish. Many lenders will require you to have a certain income for a certain loan amount.
Most lenders will cap the short term loans online to safeguard their investments. You cannot expect a company with a cap of five hundred for the first time borrower to lend you a thousand quid. Hence, you need to look for a lender that can satiate your needs.
Compare the propositions from all potential lenders which are those who would be willing to entertain your application. You can use an online website like this one to compare lenders and their loans. This will be easier than trying to do it manually.
Finally, you should pick the best short term loans online and apply. You can use a channel to apply to multiple lenders so you have greater chances of being approved, by at least one lender if not more.
A Stepwise Guide To Help You Simplify The Process of Short Term Loans UK or title loans
It is natural for anyone to scour the internet in search of short term finance in the UK. Today, you don’t need to walk up to a bank or any lender for that matter to get a loan. You can check out a short term loan in the UK from the comfort of your living room and you can even apply online.
Trying to find short term loans UK?
Before you know it, you would be sending all the details and if approved, your loan amount will be credited to your bank account.
However, despite everything being so convenient and desirably quick, the certainty of getting approved for short term loans in UK doesn’t exist if you don’t have an impeccable profile.
If you are among the most desired borrowers in the country, then any bank or lender would vie for your consideration. If not, you would be vying for their consideration.
Here is a stepwise guide to help you simplify the process
Factor in the possibility of using one of your assets as collateral. Assess your income and do the maths to find out how much you can comfortably pay back every month and your life would remain financially unaffected.
These are quintessential factors that banks or private lenders will consider. If you have bad credit, then banks will not consider you for short term loans in UK.
You would need to turn to payday loans or title loans. If you have an asset to use, then you can opt for banks or private lenders but your income and thus your ability to repay will determine the loan amount and also the eventual approval or rejection.
These three simple checkpoints will make dozens of lenders irrelevant in your quest.
Once you know which lenders will consider you for a short term loan, check out the minimum and maximum loan amounts they offer, the rates of interest they would charge and the repayment periods.
Short term loans in UK can lend for three months or it could be a twelve month repayment period. You need to choose what would ideally suit your needs and ability.
It goes without saying that the loan amount and rate of interest must be to your best interest but factor in the repayment period as well.
There is a substantial difference between being compelled to pay back in six months and having eighteen or twenty four months to pay with ease.
Obviously, with a short term loan you would be paying sooner and thus you would be paying more every month as compared to the same loan amount as a long term loan. See also Best Short Term Loans Lender Options To Choose.