What are Short-term Loans?
Short-term loans are instalment loans raised for a few weeks to 12 months. These are ideal loans for temporary glitches in your life. It is easier to avail bad credit short-term loans than availing a long-term loan.
If you need quick loans for a small duration of time, apply for short-term loans in the UK. Even if you have a bad credit score, you can apply for short-term loans online. Your loan application may get accepted by a few lenders who are willing to work with you. The application is processed when you apply online. When you fill a form on our website, we at Loan Broker process your application with a pool of registered lenders and you can select the loan that is most suitable for you. .
Credit Report Assessment
Loan Broker is an FCA authorised loan broker in the UK for short-term loans. We strive to search for tailor-made loans for your needs on easy terms. Our policy is transparent, and will not get you involved in any kind of risk.We access your credit profile:
- To search for the most suitable loan for you
- To initiate soft-credit check loan
- To arrange for affordable loan instalments according to your repayment capacity
- To bring reimbursement schedule to add ease of repayment
- To offer 100% free loan service
- To assure secrecy of your personal details
- To ensure transparent processing
Both individuals and businesses can apply for short-term loans with bad credit online. You can use this checklist and know for yourself if the deal benefits your credit profile.
Advantages of Short-term Loans
1. Quick short loans
Whether you seek instant loans for unexpected medical bills, broken car or home repair you can fund all uncalled for expenses with short-term loans.
2. Easy to repay
In an instalment loan the repayment of the loan is divided into easy instalments and thus it is convenient to manage the repayment of short-term loans.
3. Low cost of the loan
Short-term loans are cheaper than instant cash advance loans such as payday loans or doorstep loans and are better for anyone looking for fast loans.
4. Less stress
As the duration of the loan is less than a year, the stress of being in debt is also for a very short-term.
5. Credit improvement
As you successfully repay the loan, you will build a good credit history and you can improve your score.
6. Least hassles involved
The loan application process and disbursement of the loan amount is generally easy.
Owing to these entire benefits, a short-term loan is one of the most popular borrowing options among those who need immediate cash. In fact, it is a foolproof way for improving your credit score in a short period. People with bad credit score can use short-term loans to improve their credit situation.
Disadvantages of Short-term Loans
The interest rate of short-term loans for bad credit is more than a long-term loan for the same profile. However, if you choose to apply with a collateral or guarantor by your side, you can negotiate for a better rate of interest.
With a bad credit score, the additional rate of interest is charged to cover the risk associated with your credit profile. A broker can help you avail a deal according to your requirements.
How Does Broker help to Improve your Credit Score?
When you contact a broker for bad credit short-term loan, he would ask questions to make note of your credit requirements. You should clearly state how much you could spare every month or fortnightly for loan repayment. Based on your repayment capacity the broker would search for a bad credit loan.
Here, at Loan Broker, you have to fill an application form where in you have to mention details such as your annual income, monthly expenditures and savings so that we can search for the available deals.
With an affordable loan instalment, you could successfully repay the loan, improve the credit history, and boost your score. Improving your score would make you eligible for more loans in the future. Thus, using Loan Broker, you can avail a right deal to build future credit.
Short-term Loans-Words of Caution
Before applying for short-term loans, it is important to have a proper understanding of the terms and conditions of the loan agreement. This will let you decide whether you can afford the loan or not. The loans should not be use to fund your additional expenses but to deal with financial urgencies. Likewise, if you channelize these small loans to support long-term expenses, then it will never work. Moreover, repeated borrowing of funds can adversely affect the financial health and the overall cost of the loan can be expensive. Have a detailed discussion with the broker to understand all the pros and cons of availing an additional loan and always make an informed decision.