Best Short Term Loans Compared
If you only need to borrow money for a short period of time, then choose the best short term loan below.
Short Term Loans Summary:
Here is a quick fact check on what you should know:
- Best bad credit loan option.
- Mainly online applications.
- Must be over 18 years old.
- The better your credit rating, the better your interest.
- Usually under a year, but can extend to 3 years.
Read the full guide below, or skip to the best rates.
Compare the Best Short Term Loans Online
Here are the best online short term loans, including bad credit and fast applications.
About Short Term Loans
Short term loans are often offered online, with no need to dress up and visit a bank, or sit across the desk from someone whose job it is to scrutinise your finances and give you an answer. You can access these lenders from anywhere there is Internet access, so you save time, stress, and resources.
What’s a short-term loan deal?
A short-term loan is any loan that is designed to be repaid in a relatively short period of time. This can be a matter of a few days, or a few months, but is not generally extended to more than a year. They are often for lower amounts (maybe £1500 or less), and are often unsecured – meaning you don’t have to put up a home or a car against the loan.
A short-term loan is designed to be a short-term solution, to a short-term problem, like bridging the gap between an emergency expense and the next payday.
How can I apply online for a short term loan?
Nobody like waiting to hear if an application was successful, and nobody like waiting for a cheque to arrive in the mail once a loan has been approved. Luckily, if you meet the basic criteria, you can get a loan quickly, and have it deposited into your account a few minutes or a few hours from the time of approval.
You need to be 18 years of age or older, a citizen of the UK, have a steady job, and access to your own bank account. If this describes you, then you’re ready to get online and apply.
How to Improve Your Credit Rating for a Short Term Loan
If you have damage to your credit rating, or haven’t built one up yet, there are some clear ways to improve it. Register for the electoral role. Maintain a bank account. Secure a credit card and pay off the balance on time each month. Make sure past debts have been repaid. Don’t apply for more credit.
If you are doing all of these things, your score will steadily increase.
You can use a short term loan for emergency bills
Short term loans are a great way to handle emergencies. For example, paying for a vehicle repair right away might prevent greater damage, and you can pay back the loan when you’re able. Even with fees and interest, this may be considerably cheaper than letting the problem get worse, or missing work because you don’t have transportation.
How long can I have a short term loan for?
Short term loans are usually less than a year, but can be as long as three years in some cases. The amount borrowed is added to the amount of interest charged over the repayment period, then any fees are added. The total amount is divided by the number of months in the time period and the result is the monthly cost of the loan for the duration of the loan period.
What are the best things to use a short term loan for?
You can use the loan for whatever you like, but most lenders will take into consideration the reason you want the loan. A party might be important to you (a wedding for example), but a lender might not see that as an emergency, and will question your judgment. Needing a car repair though? That’s something that is time-sensitive and may affect your ability to do your job. A lender will see the necessity of that and may be more willing to lend you the money.
How do I know if I need a short term loan?
If you need the money now, can afford the payments, and are in a reasonably stable situation, this may be a good solution for you. Don’t overextend though, as this will only lead to greater problems a little further down the road.
How do short term and payday loans differ?
The main difference is that payday loans are usually for a very short period of time – until the next payday – and cover an amount that can reasonably be paid back on that day. In other words, the loan must be for considerably less than the borrower’s paycheque.
Short term loans are less expensive than payday loans (though they are still considered relatively expensive) and can be for larger sums of money.
Am I eligible for a short term loan?
The lender will take into account your credit history, income, and expenses and will make a decision based on those factors. They may also consider your age, the reasons for any credit history damage, and other relevant factors. There is never a guarantee that you will receive a loan.