If you’re in need of some cash fast, a short term loan could be just the ticket. Short term cash loans are a type of payday loan designed for you to payback over a short amount of time, and that you can receive quickly in order to help you to deal with a financial emergency. Here’s all you need to know about short term loans.

What Is A Short Term Loan?

A short-term loan is a cash loan that you pay back instalments, usually within a year. Whether your boiler is on the blink, your car won’t start of you just find yourself in a sticky situation, short term cash loans are ideal if you’re in need of cash quickly. Typically, people will take out a short-term loan for the following reasons:

  • For emergencies.
  • To tide them over until next payday
  • IIf they go overdrawn

 

How Do Short-Term Loans Work?

After taking out a short-term loan, you’d pay it back in regular instalments, usually between 3 months and a year. Note that, usually, the longer your borrowing window, the more you’d end up paying back in the long run. However, the FCA have recently put caps onto the interest rates, meaning daily interest cannot exceed 0.8%, in order to help keep short term loans from being as expensive as they once were.

It was stress free and the monthly installments made it easier to repay the loan.

Ali, Oxford
 

We are a Direct Lender

  • No Fees for Applying
  • Quick Approval
  • No Early Repayment Fee

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

What Are The Pros Of Short Term Loans?

There are a number of pros for short loans, and they are good if you’re looking to cover a cash shortfall. They are also good if you’re confident that you’ll be able to repay the short loan on time. However, they’re not for everyone.

Some of the pros of short term loans include:

  • Cash when you need it – often on the day you apply.
  • Quick – the clue’s in the name. You borrow, you pay back quickly.
  • Flexible – you pay back in instalments, so they’re manageable.

 

What Are The Cons Of Short Term Loans?

However, short term loans are not for everyone and there are a number of cons that you will need to consider before you take out a short term loan. Some of the cons of short loans include:

  • Interest rates for short-term loans can be higher than other loan types.
  • Additional fees are sometimes applied

 

How Do Short Term Loans Compare To Payday Loans?

Short term loans differ from payday loans in that you pay short term loans over a set period of time (3 months, 6 months etc.). Payday loans however are paid back in one fell swoop. One of the most notable things that you should consider is that short terms loan are not like secured loans such as a mortgage. This means that to take out one of these you need to put down an asset such as your house or car as collateral.

How Do I Know Which Short Term Loan Is Right For Me?

The short term loans market is full of lenders. To choose the online small short term loans provider that’s right for you, you will need to think about annual percentage rates (APR), additional fees, whether the interest rates are fixed, and whether you can change the payment schedule. There are a number of different payday loans and short terms loans that you can choose from and here at Wizzcash, we aim to match every application with the best loan in terms of affordability and the application requests.

Can I Get A Short Term Loan If I Have Bad Credit?

Having bad credit is often bad news – it can restrict you from access to borrowing, which is problematic, especially if you need cash in an emergency. It’s true that having a poor financial rating can affect your chances of securing short-term loans for bad credit. However, good short-term loan lenders should still review your application. You may well succeed if the conditions are right. FCA regulations mean short term loan lenders in the UK will check all applicant’s credit scores as part of the affordability checks.

Are Short Term Loans Good For My Credit Rating?

It is difficult to give a definitive answer on this as credit scoring is difficult to be concrete, due to each lender having a different scoring system. Generally speaking, it’s thought that a short term loan application would go on your credit file and repaying it on time could boost your credit file in the long run. However, you should not take out a short term loan for the sole purpose of improving your credit score.

Can Other Lenders Tell If I Have Applied For A Short Term Loan?

In short, yes. When you apply for a short loan online, it will leave a footprint on your credit report. Of course, if you miss any repayments, this will also show on your credit report and can ultimately affect However, when you pay on time in accordance with your agreement, this could be seen as a reliable payer by some lenders. Some scores such as Equifax credit score should give you a higher credit score when you show a history of good repayment on your loans.

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

 

Are There Any Alternatives To Small Short Term Loans?

There are a number of alternatives to small short term loans that you could look to prior to an application for a short term loan online. However, people with bad credit in particular may have exhausted all other options such as bank loans or borrowing money from friends and family, which led to the option of applying for a short term loan online.

How Can I Borrow Money Sensibly?

Borrowing money sensibly is important and a few simple safeguards can mean that you don’t borrow recklessly and end up in debt. If you’re thinking of taking out a short-term loan, ask yourself these questions:

  • What’s the APR? Am I comfortable with it?
  • What’s the APR? Am I comfortable with it?

Always calculate how much you’ll pay back in full. Factor in interest and any additional fees that may be charged so you know exactly how much it’ll cost you.

What Is The Lending Criteria For Short Term Loans From Wizzcash?

To take out a short loan, you will need to be:

  • At least 18 years of age.
  • A UK resident.
  • In current employment, taking home at least £750 a month.

What Is APR & How Does It Affect My Loan?

APR, also known as Annual Percentage Rates, is a very prominent figure and is used widely by lenders. Every lender will calculate it in the same way, and as a standard measurement, it is considered to be a useful figure which can help consumers compare and contrast different financial products. Representative APR and typical APR are two different ways of working out and presenting APR. It is important that you compare payday loan APR prior to taking out a short term loan online. This will help you to find the best and most affordable short term cash loan for you.

Are There Any Fees & Charges When It Comes To Short Term Loans?

Recent Financial Conduct Authority regulations means that any fees and charges on small short term loans are capped in order to protect customers. This means that you will never have to pay back more than double what you have borrowed. Here at Wizzcash, we have just one charge when it comes to our short term cash loans, and that is a default fee of £15 which is only charged if you miss a repayment. We do not charge early repayment fees or application fees.

How Do I Know When I Need To Pay Back My Short Term Loan?

Here at Wizzcash, we aim to make the repayment process as easy as possible. Not only will we take the repayment from your account automatically, we will give you plenty of warnings via email and text to ensure that you know exactly when the repayment is due.

What Happens If I Can’t Make My Repayments?

Late repayment can have serious financial implications, but if you let us know prior to your repayment date if you cannot make the payment, we will always do our best to help you by providing you with a payment plan of manageable repayments. We do not offer rollovers as we are conscious that it could lead you to spiralling debts.

Are Wizzcash A Responsible Short Term Loan Lender?

Responsible lending is an important practice, and here at Wizzcash we are proud to be a responsible lender. We act in our customer’s best interests, ensuring affordability, transparency of terms and conditions, and will also support you when it comes to any repayment difficulties. Any information that you share with Wizzcash is 100% confidential and we will never share your details with anyone else. We also ensure that our payday loan calculator is completely transparent, while also carrying out affordability checks to ensure that we only lend to those who can truly afford to pay it back.

Apply for a short term loan online with Wizzcash today.

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