Just because you need some extra cash does not necessarily mean that you have to borrow thousands of pounds. Often a few hundred pounds for a short period of time is sufficient to come out of a sticky situation.
The interest rate for a short term loan can be as little as 5% if you have a perfect credit score. But the cheapest loan rates are typically reserved for bigger loan amount like £5000 – £15000 borrowed over a period of a few years. Smaller loans tend to be much more expensive.
How do Short Term Loans Work?
Most lenders process a short term loan requests quickly and transfer the money in less than three days. But some lenders may take longer to approve these loans depending on their proprietary course of action. So, it makes sense to apply for a short term loan in advance so as to get hold of cash on time.
The smartest way to apply for these loans is by getting online or mobile which is also popular as text loans. Here you can search, compare and apply for any kind of financial products free of cost. Most online brokers can help you compare multiple loan options (quotations) and choose the one that best suits your situation. Application, documentation and other formalities are done in minutes and you can get hold of cash in as little as 24 hours.
The term of these short term loans can be anywhere between 2 weeks and 3 months. So, one can choose a loan tenure, according to his budget. It can be very tempting to opt for a long term for these short loans to reduce the installment value. The interest rate for longer term might be lower, but in fact paying the reduced interest rate for longer term ultimately makes the loan more expensive.
It is the main advantage of a short-term loan that you will only have to make repayments for a limited period of time. So you can cover your urgent expenses on time and pay back without any trouble.
Loan Amount can Range between £500 and £2000
The exact loan amount proposed by the lenders is calculated on the basis of the applicant’s financial situation. They consider your regular monthly income, credit score, debts and other credit commitments to understand your financial situation and accordingly calculate the loan quotation.
Challenges of a Short Term Loan
Choosing a short term loan mean that you are able to pay off the loan amount quickly. So while accepting a loan bear in mind that your repayments will be higher than your borrowed amount and choose the loan tenure according to your affordability. The interest rate can be high on short term borrowing, so better compare lots of different loan quotations to ensure you find the right deal for your needs. Know more about feel free to visit at http://www.textaloan.org.uk/