Thinking of a short-term loan and what it entails can frighten anyone. Even the bravest would shiver from the thought of it because their fears are fueled by unfounded information on what short term loans are all about. But the truth is a short term loan is a viable option for anyone regardless of their credit history.
What Is A Short Term Loan?
Let’s face it; not everyone can qualify for a bank loan. This is particularly true for those with a less than desirable credit history. When you’re faced with an emergency financial situation, don’t be discouraged. A short-term loan is a solution to your worries. The small loan allows you to pay any urgent bill that your budget can’t cover yet. You can also use it to supplement your finances, especially if you freelance for a living.
It is possible to loan as little as £ 50 to as much as £ 1000 without necessarily posting big collateral. The amount you can loan may also go as high as £ 2,000 or more in certain situations. Best of all, the terms of payment are easily ranging from three to twelve months. Payments can be made weekly or monthly, but the duration of the loan doesn’t exceed a year.
What Are The Types Of Short Term Loans Available?
Payday loans offer a 30-day payment term. However, reputable lenders may also provide flexible terms if necessary. This type of short term loan requires a lumpsum payment at the borrower’s next paydate. It is best to choose this type of short term loan for unexpected emergencies such as hospital bills, funeral expenses, rent arrears, car repair, as well as smartphone damage.
A doorstep loan is considered a type of personal loan. In this case, agents of a lender come to a borrower’s home, hence, its name. You may also know this as a doorstep cash loan or door collection loan. This can be beneficial for a borrower who may have some concerns about their loan. The agent can discuss the options available to them in an environment where the borrower might feel more comfortable like their own home. The service would feel personal and less intimidating for many. Repayment of this loan is made weekly with the agent making housecalls for the collection.
If you are looking for a long term lending solution, then a multi-month loan or an instalment loan might be for you. In this case, the amount to repay is divided into three separate payments. This would result in higher total credit. But it does provide smaller monthly instalments that might be more within your means to repay. Plus, repayment dates are often made based on the borrower’s convenience. New customers who choose to avail of this short-term can get from £ 100 up to £ 400. Customers who borrow again are eligible to avail of a larger loan amount.
Nowadays, each type of short term loan is available from reputable online lenders. With a few clicks of the button, you can apply and possibly get your cash today without having to fall in line at the bank or wait at an office. The funds are typically deposited into your bank account. That is assuming all the documents required for your loan application are in order.
The bottom line, you have nothing to fear about short term loans. Nowadays, the Financial Conduct Authority regulates the industry to make certain borrowers are not victimized with huge fees or scams as in previous years. Borrowing money has never been easier. Don’t let hearsay or someone else’s bad experience keep you from applying for a short term loan today.