Short term loans
What are short term loans?
Loans those you pay rapidly or in a short duration are short term loans. These loans are generally for a small amount like from £50 to £ 500 only. Also, you can pay them from 3 days to 6 months duration as per the terms of the loan. Likewise, you can call these loans as payday loans, salary loans, small loans and little loans. Short-term loans are very common in terms of requirement and availability both. As a result, the lenders approve these loans with or without guarantee. In fact, people with bad credit can also apply for these loans.
How to apply for short term loans?
Initially, these loans were not very common. By the time, they have become very popular because of its characteristics. Most of the times, it does not need any guarantee or guarantor. You may apply online by filling up an online application form for guaranteed loans. In these forms, you submit your personal and employment details with a loan amount you want to ask. As per the process, the lender verifies the details and transfers the money. If borrower’s information matches the criteria of loan application. A borrower may also get a free quote for the loan. In fact, they may try with the different lenders. Shot-term loans are good to consolidate your small outstanding bills, as advised by Money Advice Service unpaid bills and late payments can seriously damage your credit rating.
Why go for short term loans?
It is advisable to go for these loans because of its characteristics.
- You can pay them off in a very short duration.
- Moreover, these loans do not require any guarantee or collateral.
- Since it is a short term loan, a borrower does not have to bear a burden for a long time.
- Most noteworthy, these loans do not require credit checks most of the time. One can get the loan on bad credit rating too.
- These loans help the borrowers to meet their random and unplanned needs.
Challenges of short term loans:
There are a few cons of short term loans. Hence, you should be careful before asking for a loan.
- If you do not pay these loans on time, you may spoil your credit scores. In fact, skipping of repayments also bring the credit scores down.
- The lenders and the loan sharks may ask you a high rate of interest because of your poor credit scores.
- As a result, one may be caught up in these small loans and struggles to make the payment of instalments on time.
Thus, such loans are available in the market. And you may get it today.
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