5 Reasons to consider a Short Term Loan
A short term loan is a loan which you borrow for a short period of time, hence the name. People usually borrow them for up to a year and will be repaid in smaller monthly instalments until you have paid off the fixed price. Our short term loans range from £100 all the way to £1,500. A short-term loan is there to quickly solve your issues, whether that be that unexpected bill or medical expenses. So, why should you consider a short term loan?
The general misconception that people think when they hear people are using loans that they that you aren’t earning enough money to support your family. Or you’re no good at managing your money. But, in actual fact, a loan is a great method which offers you a way out of a problem.
Reasons to consider a short term loan
Here at LoanPig, our online application gives you the easiest and fastest way to get your hands on a loan. If you are approved, you could get your hands on a loan in less than 24 hours, meaning we are perfect if you are needing the money for an emergency.
There are plenty of reasons why a short term loan could potentially be a great idea for you. But, please note that you should only borrow a loan if you can afford the repayments comfortably and at ease. Here are our five top reasons as to why they are a good idea:
1. Short term loans are short-term options
You only need to focus on the immediate future as the loan is paid off within a much shorter space of time. Many people don’t like the idea of borrowing for a longer period of time as they might find it worrying and stressful. But, with short-term loans, you could have repaid your loan in a months time and then be done. There is no stress whether or not you will be able to afford the repayments in the future as are only short.
2. Short term loans can be used for necessities
Typically, short-term loans are for emergencies only. This could be for that one unexpected bill that you found out about yesterday. Or perhaps your car broke down and you can’t afford the bills at the moment. Another great thing is that due to the speed of them. They are perfect for those situations which are urgent and need immediate action taken. This could be things to do with your or your families health.
3. Short term loans are unsecured
As they are usually for smaller sums and borrowed over fewer months or years, they tend to be unsecured i.e. you don’t need an asset. A lender and broker make the decision whether it is a risk or not to lend to you. This is based on your credit score and your current financial position. So, unlike secured loans, if you have problems with your repayments, they won’t threaten you with your asset.
4. Short term loans could cost less
With a short term loan, you could end up paying less than you would with other types of loans. This is because of the interest that all lenders and brokers charge to anyone borrowing money. It all depends on the amount you borrow and the length of time in which you borrow it. For example, if you are wanting to borrow £500 for 2 months, the repayment would be smaller than if you wanted to borrow £500 for 10 months. This is due to the interest.
5. Short term loans are available quickly
Our short-term loans at LoanPig are always available quickly. Luckily, our up to date, online application process allows us to read over your application and make an instant decision whether or not to lend to you. If you applied before 3 pm on a weekday and are accepted, you could get your loan on the same day. But if it was anytime later, you will probably receive your loan on the next working day. Either way, our loans are always faster than a bank loan. When applying to a bank, you might be waiting weeks, if not months for a loan.
If you feel as though a loan is a great option for you, but you need some more information, see our FAQs.