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Short Term Loans

How much do you need?

Short Term Loans

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Emergencies happen all the time and often the funds to cover the immediate expense are just not available. Many people in these situations turn to short term loans to solve their temporary cash flow problems.

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What are Short Term Loans?

Short term loans are forms of credit you can borrow for shorter periods of time, typically between 3 months and 12 months.

Unlike traditional longer term finance from banks, you won’t be paying this type of borrowing for years at a time. However, the APR for short term lending is often higher.

If your credit history is less than perfect, you may have a greater chance of being accepted. This is largely due to higher interest rates of short term credit, which allow lenders to have a more relaxed approach.

This does not, of course, mean that lenders can ignore responsible lending rules. So anything you apply for will be subject to affordability checks.

Short Term Loans in the UK

Short term loans in the UK have risen in popularity in recent years, thanks to the financial crisis of 2008 and the current rising costs of living. The concept of lending between one person and another goes back centuries to the practice of transferring money, called Hawala in Arab Countries and South Asia.

Today, the short term lending market in the UK exists with strict regulations to protect you as the customer and to ensure good lending practices.

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How much can I Borrow?

How much money you can borrow with a short term instalment loan, depends on your personal circumstances. Usually, you can borrow between £100 and £5,000.

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When applying for a loan you will undergo a credit check to assess the health of your credit history. Lenders carry out affordability assessments to determine whether you can repay what you borrow.

Short Term Loans for Bad Credit

If your credit rating suffers from being lower than you would like it to be, you might still be able to get short term finance for bad credit. However, short term bad credit loan offerings, don’t necessarily mean that your application will be approved. Lenders want to know that you can repay the total amount you borrow in full and on the dates you agree to.

The majority of responsible lenders will look at you as the individual you are now, not who you were several years ago. So while acceptance isn’t a guarantee, they are more openminded than traditional lenders.

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How to apply Online

Applying for a short term loan online is relatively easy compared to traditional methods. The majority of lenders have an online application process.

You will be asked to provide some necessary pieces of information such as:

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    Your full name

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    Address

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    Employment information

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    Income details

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    Monthly expenditure

And any further financial details, which can vary between lenders.

In the event that you would rather talk to someone before making your application, you can search for the lender’s website to find their customer service details and telephone number.

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Advantages of Short Term Payday Loans

Some of the benefits of short term payday loans include:

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    Fast approval for applications

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    Borrowing over a shorter period can mean paying less interest

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    Can help to improve your credit rating (if repayments are made on time and in full)

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    Flexibility to borrow what you need when you need it

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    FCA protection with price caps in place

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Disadvantages of Short Term Loans

There are of course some downsides to short term borrowing which include:

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    Interest rates can be high

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    Can have a negative impact on your credit score if you fail to pay on time

Why Choose iLoans for Short Term Installment Loans?

iLoans is not a lender, but a credit broker authorised and regulated by the Financial Conduct Authority. All of the specialists on our panel of lenders practice responsible lending to ensure you receive the best possible loan offerings dependant on your personal circumstances.

We believe that applying for any form of personal finance should be as uncomplicated and painless as possible. That’s why when you apply online through our fast application form, a decision from our panel of specialist lenders will be with you in no time at all. On approval, your cash should be in your bank account on the same day.

As members of the ICO, we can assure you that any personal data submitted through our website is kept secure and safe.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

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