Throughout our lives, we’ll come up against various financial hurdles that can make our lives more difficult, like managing the cost of living on a low income, and unexpected expenses that we can’t afford. This is where a short-term loan could help. If you’re struggling to make ends meet and you’re faced with an emergency situation, like a broken boiler, or urgent home repairs, these loans allow you to access funds quickly and easily.
We’ll take a closer look at the benefits of short-term loans below to help you make an informed decision.
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Understanding Short-Term Loans
Short-term loans – as the name suggests – are a finance option that is typically paid back over a shorter period, up to around 9 months. These loans are unsecured and can be helpful if you’re faced with an emergency expense. Depending on your lender, you can borrow up to £1500, even if you’ve struggled to be approved for loans from your bank in the past.
Short-term loan lenders have more flexible eligibility terms and base their approval decision on affordability rather than credit score which means those with bad credit can benefit. These loans should only be used to deal with unprecedented expenses that your income may not stretch to cover and should be used responsibly.
Benefits Of Short-Term Loans
So, what are the benefits of applying for a short-term loan to help you navigate financial hurdles? Let’s take a closer look at some of the advantages:
1. Quick Access To Funds
Emergencies are often time-sensitive, and short-term loan lenders understand this. Lenders can process your application in as little as 24 hours and get back to you with an approval decision quickly. If your application is approved, you can benefit from your chosen sum of cash in your account in as little as a few hours.
This is helpful when dealing with an unprecedented expense.
2. Flexible Terms
Short-term loans can allow you access to more cash than payday loans. This is due to their longer repayment period. Payday loans are typically paid back within a month, whereas short-term loans can have a repayment period of up to 9 months.
This means you can choose a term to suit your budget and allow you to manage your debt more easily.
3. Increased Eligibility Rates
Short-term loan lenders base their decision on affordability rather than your credit score, so if you can provide proof that you can afford to pay back your loan each month, you’re likely to be approved.
This is helpful for those with bad credit that may struggle to be approved for loans from their bank and can be used as an alternative to traditional loans.
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4. Build Or Improve Credit
If you know you can afford a short-term loan, and you pay it back on time each month, this can improve your credit score. Demonstrating that you can manage repayments and afford to pay off a short-term loan, will be reflected in your credit score, standing you in a better position when it comes to being approved for a range of loans in the future.
Access To A Range Of Lenders
There are many short-term loan lenders online that may be able to help you when you need it most, with options perfectly suited to your financial situation. Make sure you choose a lender that is reputable, and check reviews from others online to get an idea of the service they offer.
Be sure to choose a lender that offers high-quality customer service, and that you can get in touch with easily – this is crucial when it comes to your finances.
