As the name suggests, a short-term loan is a type of credit that is to be taken out and repaid within a short period of time. Short term is usually seen as anything that is less than 12 months, but the loan term is dependent on the lender. Predominantly, short-term loans are taken out for a period between 3-6 months. If you are looking to borrow credit for longer than 12 months, then you should seek a more suitable loan option such as a Personal Loan.
How does a short-term loan work?
When applying with The Loan Tree for a Short-Term loan, we try and make it as simple as possible for you in finding you the most appropriate lender. Firstly, you will need to fill in our application form online. The application form will ask you to fill in your details and provide us with information on how much you would like to borrow and how long for. We will then check through our panel of lenders and provide you with an instant on screen decision of a lender who has agreed in principal to offer you a loan. The loan amount that they offer you, will be based on your needs and circumstances.
What can I use a short-term loan for?
A short-term loan is usually a credit option that is used by people who have found themselves with an unavoidable expense that they can’t perhaps pay for right there and then.
A short-term loan doesn’t have to be used for anything in particular, the use depends entirely on the person who takes out the credit. This could be anything from unexpected bills, a broken-down car that needs to be fixed, home improvements and repairs, or even debt consolidation.
How do I repay my short-term loan?
When applying for a loan, you will have provided details in your application for how long you wish to borrow for. You will then have been forwarded onto a lender who has agreed in principal to offer you a loan. You and the lender will then agree on the time period in which you are to repay the loan back. Your loan repayment will be in smaller more manageable instalments every month, rather than one lump sum.
Can you get a Short-Term Loan with poor credit?
If you have a poor credit rating, a lender may still be willing to lend to you, but at a higher rate than was originally advertised to you. It is recommended that you check through your credit report before applying for any type of credit. There may be elements to your report that could hinder you from being successfully accepted for loans or credit cards, such as a late payments, insolvencies or judgements. Credit Knowledge is a FREE* tool which you can use to understand and monitor your credit report and score and learn how to build and maintain your score, whilst also providing you with access to Discounts & Vouchers to save money across the high street, and the social reporting tool Knowso! Find out more here!
Choosing the right short-term loan for you?
There are many different lenders offering short term loans at a range of different rates, but it is important that you choose the right option for you. Here at The Loan Tree, we can help you find the most suitable lender that is willing to lend to you today. If you are still unsure, comparison site Supacompare has a wide range of short-term loans for you to compare! Compare loans here.
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