Short-term loans – What are they?
Short-term loans are a form of loan designed to be repaid back in a short period of time. Often small in size, although they can be larger, short-term loans are ideal for people who do not want to be tied down to a long repayment period. As such loans can be needed for a variety of reasons from a wide selection of people, lenders now offer a variety of short terms loans online. As such, you can be much more specific regarding what type of loan you want, how much you want to borrow, and of course how long you have to repay it back.
By having such a large panel of lenders, we have further increased your chances of finding and being approved for your loan. Featuring some of the biggest, most well-known short term lenders, as well as smaller, more specialised ones, you will have a much better chance of finding what you are looking for. This includes loans designed for people who don’t want a guarantor, as well those focused on helping people on benefits.
Online short term loans have appeared because modern lenders have realised that whilst everyone wants simple, easy access to loans, not everyone is the same. By taking into account such different circumstances, you now have a much better chance of finding the right loan for your unique situation. As with all the loans offered by the lenders on our panel, you are still able to apply for a short-term loan even if you have a bad credit rating. This is because all of the lenders that we work with have been carefully selected due to their dedication in providing online short term loans to people whom traditionally struggle.
Focusing on more than just your credit score, these lenders may be much more sympathetic about your poor credit history when processing your application. As a result of all this, short-term loans have now become a practical, affordable and incredibly quick way to borrow money for a short period of time.
Short-Term Loans – How short is short?
When looking for a short term loan, you may be surprised to learn that you have quite a lot of flexibility in terms of what type you can apply for. The first choice you have is regarding how long you want your loan for. Originally, such loans were called payday loans. This was because they were often for just one month; usually being repaid the next time you had been paid.
Whilst very convenient, these loans were often unsuitable for most because of their short repayment period as this often led to financial problems later in the month. To give people better access to such quick loans, lenders now allow you to borrow money over varying time periods. short-term means that you can borrow money over everything from just 1-month up to 24-months and even longer.
How much you borrow effects how long you will be given to repay it. Therefore, the smaller the amount you borrow, the less time you will be given to pay it back. However, wanting to be as flexible as possible, many lenders will offer you various options regarding the time.
Can I get a short-term loan with bad credit?
Unlike banks and other traditional lenders that place a lot of importance on credit score when assessing your application, the direct lenders that we work with will look at other factors. Such factors include your current financial status, as well as whether you are in employment or not. Therefore, even if you have been declined for such a loan in the past because of your credit score, we are confident that we can help you. This is because 92% of all applicants who use us and complete the online application process successfully get the money they need – often within just minutes of being approved.
To help further improve your chances of being approved and getting you the quick loan that you need, we enable you to perform a Soft Credit Match. Using the information you provide us, we will be able to assess your likelihood of being approved for a loan before you even apply. Not only does this prevent you from worrying about whether your application will be successful or not, but it also greatly reduces the time it takes to get you the money, and also protects your credit score.
At Xav Loans, we are aware that your credit score can be damaged if you make multiple applications for credit, making it even harder to get approval in the future. Bypassing this, our Soft Credit Check not only keeps your score safe but can also help improve it if you make the repayments for your online short term loan on time.
Short-term loans – What options do I have?
Whereas in the past, when you were given very little control regarding your loan, modern short term loan direct lenders provide you with much more freedom. This means you have many options when it comes to taking out a short-term loan. Firstly, you can, of course, choose how much you wish to borrow. Once restricted to small loans, short-term loans now come in a variety of sizes, often running into the thousands. The reason for this is because you can now also select how long you have to repay the money you borrow. You can now choose from anything up to 24 months and more, the size of the loans available to you has also grown.
Some lenders may also provide the option of having a guarantor or not. Understanding that some people do not wish to ask, or have access to, someone to pay their repayments should they not be able to, some of the lenders in our database provide loans that do not require a guarantor. Furthermore, there are now also loans that take into account your personal circumstances, such as whether you are a student, receive benefits or are currently unemployed.
Whilst many lenders will insist you are in part-time or full-time employment, there are some who take such things into account and therefore also offer loans to people out of work but are able to meet their repayments. Providing even more freedom, some lenders will get the money into your account almost instantly, whilst others will deliver the cash to your door. These loans are particularly good if you do not have a bank account, struggle to get outdoors, or just prefer to deal with a real person face-to-face.
Are short-term loans safe?
When looking to borrow money, you will, of course, want to deal with a lender that is trustworthy and legitimate. As a licensed credit broker, Xav Loans is fully authorised and regulated by The Financial Conduct Authority. As such, all of the lenders featured on our panel are also authorised and regulated by the FCA. This means they are legally bound to ensure the loans they offer are fair and completely transparent.
The FCA ensures that all loans are competitive; meaning lenders must not charge exorbitant interest rates. All short-term loans are bound by a rate cap of 0.8% interest per day. This means that loans offered by modern short term direct lenders are now much better controlled. Such regulations cover both payday loans and short-term loans.
Traditionally not as controlled as other loans because of their short repayment periods, short-term loans are now much more heavily regulated; meaning they are now more competitive and safer than ever before. Furthermore, modern short term loan direct lenders will also give you complete access to your loan; meaning you will always have all the information you need. Not only will this enable you to see exactly how much you need to repay back, but also prevent you from being victim to any hidden charges. As part of this, and to reduce the amount you need to repay back, we do not charge you for any of our services.
Doing everything we do completely free of charge means you won’t be suddenly hit with any expensive broker fees. Repaid in the time agreed, short-term loans are an affordable and incredibly convenient way of borrowing money. As with all loans, you must ensure you can make the repayments over the agreed repayment period. It is therefore very important to calculate how much you can afford to repay each month. Whilst the temptation is, of course, to repay the money as quickly as possible, this must be balanced to ensure you can continue paying your usual monthly expenses.