What Are Short Term Loans?
A Short Term Loan is a loan which is paid back over 3 months to a year. Anything over twelve months is normally considered to be long-term borrowing. Short-term borrowing is not the same as a payday loan, which is repayable in full within a month. Many lenders, including LoanPig, will let people repay their short term loans earlier with no penalties.
Why Might I Need a Short Term Loan?
Generally, short term loans are needed to cope with an unexpected expense, in the same way that a payday loan can provide help in a financial emergency. Typically, this might be something like the breakdown of an essential household appliance; a car that’s used for commuting or the school run requiring emergency repairs; a larger bill for utilities than usual; or to take advantage of a particularly good deal on a necessity.
It’s recognised that even if people have savings, a few financial emergencies one after the other can mean that some short term borrowing is needed to tide individuals over for a few months. Whilst short term loans can be a good solution for people who have a temporary financial crisis, they aren’t suitable for individuals struggling with long-term debt or money concerns. If you are not sure that you will be able to pay the money back according to the agreed schedule or feel that your finances are insecure, short-term lending is unlikely to be a good option.
Why is a LoanPig short term loan better?
When searching for a short term loan you are bombarded with APR this and Fixed APR that, but what does it really mean?
We’ve put together an example comparison for you which shows what an existing LoanPig* loan customer can get vs what most of the other lenders are offering
BTW, the representative APR for this loan would be approx. 307% P.A.
*LoanPig is a trading name of the short term loan lender, The Money Hive Limited.
How Do I Apply For A Short Term Loan?
We have made the application process for our loans as simple and quick as we can. As a responsible lender, we do need sufficient information to make an informed lending decision that’s right for each applicant. That said, we don’t ask for anything unnecessary: just what’s needed to quickly process your request for short-term borrowing. The first step if you wish to consider a short term loan is to use our online loan calculator to see how much your monthly instalments and rate of interest is likely to be. This depends not only on your personal circumstances but also on how much you wish to borrow and how long you require the repayment period to be.
It’s important that you are confident that you will be able to repay the loan before embarking on borrowing. If you are happy with the proposed schedule of repayments, fill in the online application form and we will process it as quickly as we can. You can apply for short term loans online with us at any time.
Am I Eligible For Short Term Loans?
The short term cash loans which we provide are suitable for people with a regular source of income who need a temporary cash injection to cope with unexpected expenditure. In addition to having a regular income (whether from a pension, employment or benefits), applicants must:
– Be a UK resident.
– Be over 18 years old.
Many people are concerned that if they have had financial difficulties in the past, have a poor credit rating or have no credit rating (for example, because they are only just 18, or simply haven’t needed to borrow any money in the past), that they will automatically be ineligible for short term loans UK lenders offer. LoanPig is a responsible loan lender who won’t lend to anyone who is clearly unable to afford to make the required repayments.
That said, you do not have to have a top credit rating to successfully apply for a short term loan from us. We use a panel of lenders, some of whom are prepared to lend to clients who have less than ideal credit status. With short term loans online, there are a number of options that you may still be eligible for.
Each loan is considered on its own merits. Loan applications are credit-checked, but credit score is not the only criteria on which loan applications are considered. If you are concerned about your credit rating or have any other queries relating to the process; our friendly, knowledgeable team are on hand to help you when you apply for a loan.
How Much Would You Like?
Are Short Term Loans The Right Choice For Me?
There are a number of different factors to consider when deciding if these types of loan are going to be the best option for your current financial issues. Some questions to consider are:
– Why do I need this loan? Is it simply due to a run of unexpected expenditure, or am I failing to keep up with my outgoings on a regular basis? If you have a longer-term debt problem, short-term borrowing won’t solve it.
– Can I afford to make the required repayment each month? If you take out a loan, it’s vital that you are able to repay it.
– What if i’ve had money problems in the past? Easy answer is yes, we look at all types of financial situations, even those with bad credit can apply for a loan and as long as they repay it on time and in full.
– Am I able to prevent the situation from happening again, so that I don’t become dependent on short-term borrowing? Short term loans should be a temporary fix, not a regular source of additional income.
Why Should I Choose LoanPig For Short Term Loans?
Some of the main reasons to choose LoanPig include:
– They offer some of the best short term loans on the market, with competitive interest rates and flexible repayment options
– LoanPig is a short term loan lenders that is regulated by the FCA and place honest, transparent borrowing at the heart of what they do.
– The application process is fast and convenient: applicants can complete the whole thing online.
– LoanPig’s customer care team are happy to help at any stage of the process.
– The application process, acceptance and cash transfer take place within a short time frame: many applicants receive their cash the same day as they apply.
– LoanPig will consider applications from people with a poor credit rating or who have had financial difficulties in the past.
Compare Short Term Loans
When looking for a short term loan, it’s always a good idea to be aware of what different loan companies can offer you and which the best choice is when it comes to you and your personal finance needs. The amount you need to borrow, coupled with the rate at which you wish to repay is the likely to be the biggest deciding factor in choosing a particular lender. LoanPig allows you the chance to compare short term loans so that securing short term credit becomes a more streamlined process. If you’re looking to secure some cash quickly and as securely as possible, compare loans first at LoanPig.
Taking out a short term loan needn’t be difficult or cause you to struggle with repayments. With LoanPig, you are always in control of your finances.