Every now and then, you find yourself in a financial pinch. Whether you are short on budget or have debts to pay, it can be difficult to make ends meet. If you find yourself in this situation, you might be looking at short term loans for relief. This loan option is suitable for borrowers looking for a small amount of cash to get them through the next paycheck. This is why we have created this guide for you to help you find a reputable short term loan lender. The difficulty in choosing one lies not in the limited availability of options; instead, it lies on being able to discern which ones are worth your time and effort.
In the UK, there is no shortage of short term loan lenders. You can find them in your local area or online. It does not matter where you choose to find them, the most important thing is to know what to look for so you can pick the right one.
In this guide, you will get a break down of the key characteristics and things to look for in a short term lender to ensure they are legitimate and reputable. That way, you won’t end up in more financial pinch than you begin with.
Choosing the Best Short Term Loan Lender
Before you start looking for a short term loan lender, it is important to determine two things first: how much you would like to borrow and for how long. This is an important step in your decision making process as it can determine which is the right lender for you.
As already mentioned, you need to decide on the amount you want to borrow and for how long you want to borrow it for. It is best to look at your previous accounts so you can determine how much spare cash you have each month. This will help you determine the terms for the loan given the amount that you can allot each month. It will also entail that you evaluate the interest rate that you can afford to pay on top of your loan.
Every lender differs in terms of the interest rate that they offer. You must pay it due diligence to research on various interest rates. That way, you can match it with your financial capacity. Gather as many quotes as you can in order to make a smart decision.
Another important step that you have to do is to check the legitimacy of the lender. If you want to know how to find a reputable short term loan lender, you can do your research online. Create a shortlist of lenders that you would like to consider getting a loan from. You can check for reviews from other consumers and borrowers on their website and via third-party sites. It is also a good idea to check the website of the lender to gather as much information about them. You can assess the website to determine the company’s information, as well as their contact details, and determine their level of professionalism and credibility.
There is a huge array of UK lenders offering short term loans so you need those two factors to help narrow down your options. You can enlist the help of an online loan broker to be able to match your needs to the available lender. Not all short term loan lenders are the same. They vary in terms of the interest rates they offer and a few other factors. By working with a broker like Money Pig, you not only simplify your search and save time; you could end up saving more money in the long run. This will also ensure that you can work with a legitimate short term loan lender (as there are plenty of online scams out there).
What to Look For?
There was a time when borrowers had to turn to banks when in search of loans, specifically short term loans. But these days, you can find many reputable short term loan lenders in the UK (and online) if you know what to look for and where.
You can simplify your search for the best lenders if you have a list of criteria with which to compare them by. The following are some of the key factors you need to look for when shopping around for the best lender.
Accessibility is one of the primary features that you need to look for when comparing short term loan lenders. By accessibility, it refers to the ability to connect with the lender. This is one of the features that borrowers expect nowadays given the advancement in technology that facilitates faster and more efficient communication. The lender must have their own website that can be accessed 24/7. This website must also provide round-the-clock support so you can get access to customer support when you need it. In addition, they must provide an extensive list of contact information so you can reach out to the lender in the most convenient method as possible – it could be email, phone, fax, or chat.
Affordability is also a crucial factor to consider when you are looking for a reputable short term loan lender. It is important to note that you should not go for lenders that provide the lowest rates – although it might seem tempting. It is important to go for short term loan lenders that offer reasonable rates and terms that are agreeable to you. When looking at interest rate quotations given by lenders, it is important to take into account your own financial situation. If you have low credit, your interest rate is going to be higher than the average rate given by the lender (or versus borrowers with good credit scores).
Finally, choose a lender that can process your applications with ease and speed. Unlike traditional bank lending that can take a few days to process, short term loan lenders can process your application in a few hours to a day. Make sure you obtain the documents needed for your application to facilitate a speedy processing of your loan application. In some cases, sending your loan application online can also speed up the process. This won’t guarantee that you are dealing with a reputable lender but it is one of the characteristics that legitimate lender can offer for those interested borrowers.
At Money Pig, we make it easier for you to find your ideal loan products. Our goal is to help match you to the right lender to increase your chances of getting approved for a loan and obtaining the money that you need. We will gather your information to help us match you with our pool of short term loan lenders. This is how we can save you time and effort since you no longer have to do the research. Our pool of lenders also ensures that you are working with a legitimate lender and never have to worry about scams anymore. We don’t make guarantees that you will be approved by our matching service greatly increases your chances of finding the right and reputable lender.
FAQs on How to Find a Reputable Short Term Loan Lender
Are you looking for more tips on how to find a reputable short term loan lender? Below is a list of questions commonly asked by interested borrowers looking for short term loans, as well as the corresponding answers so you can get the information you need.
- How do you choose a reputable short term loan lender?
- Do short term loan lenders perform a credit check?
- Why choose short term loan lenders over traditional banks?
- When should you take out a short term loan?
- What are the potential drawbacks of a short term loan?
- What are the benefits of a short term loan?
- Am I eligible for a short term loan?
- Can I get a short term loan with bad credit?
- What fees should I expect when getting a short term loan?
- What are the major forms of short term borrowing?
- How to avoid short term loan scams?
- How long can I have the loan for?
- How soon can I receive the loan?
- How do I find a short term loan lender?
- Can Money Pig help me find a short term loan lender?
How do you choose a reputable short term loan lender?
The first step in finding a reputable short term loan lender is to check if they are certified by the Financial Conduct Authority (FCA). This organisation is responsible for regulating all financial services firms in the UK. In addition, they ensure that consumers are treated fairly by lenders. Borrowing from a lender that is regulated by the FCA will give you peace of mind knowing that you are protected and that the lender is certified and legitimate.
With the FCA, you can file a complaint against any lender who you might feel is being unfair in their loan terms towards borrowers. Otherwise, you could be at risk of being scammed by the lender if they are not governed by an authoritative body.
Do short term loan lenders perform a credit check?
Yes. All lenders in the UK that are legitimate and certified by the FCA are required to conduct a credit check on all loan applications – even on short term loans. If a lender promises that you can get a loan without a credit check, you need to be wary. This could be an indicator that the lender you are dealing with is not being honest.
You want to choose a lender that is reputable enough to abide by the guidelines set by the FCA. Otherwise, you won’t have the protection from the organisation in terms of your rights as a borrower to ensure fair treatment with their loan policies.
Why choose short term loan lenders over traditional banks?
There are many advantages that you can get when you opt for online lenders in the UK over traditional banks if you want to obtain a short term loan. Speed is easily one of the most notable benefits you can enjoy. Traditional bank loans follow a specific procedure and can take days to weeks to get approved, depending on the amount you want to borrow. But with a short term loan lender, some can even process and release the loan within 24 hours.
Accessibility is another distinct advantage. Since UK lenders are available online, you can enjoy 24/7 support and can even submit your loan application online. It provides ease and convenience to the entire process so you are also more likely to get your loan sooner. Finally, online lenders in the UK are able to give more competitive interest rates versus traditional banks (not to mention the latter is stiffer when it comes to approval requirements).
When should you take out a short term loan?
In case you did not know, a short term loan carries with it a higher interest rate as compared to long term ones. It is, therefore, important to be strategic as to when you should take out this type of loan in order to save on the interest rate. To put it simply, you must take out this type of loan only when it is absolutely necessary and you have no other means of producing the funds needed.
The main advantage when obtaining a short term loan to pay for your purchase or sustain your daily cash flow is that it is predictable. Most short term loans must be paid off in a year. This will enable you to look ahead to your finances and make assessment accordingly.
What are the potential drawbacks of a short term loan?
As mentioned above, there are potential drawbacks when you apply for this type of loan. The first and most obvious one is that they are expensive to acquire given the higher interest rates. Lenders are not able to make money off of a longer term so they tend to offset that by imposing a higher interest. Moreover, some lenders require more frequent payments such as weekly basis. This can put a serious dent to your cash flow if you have to constantly have to meet payments for the loan.
These are some of the things to think about and prepare for before you apply for a short term loan.
What are the benefits of a short term loan?
The benefits of a short term loan outweigh its potential drawbacks. First and foremost, short term loans ensure quick funding so that it is ideal for emergency situations or when you are in dire need of cash to make a purchase. Most short term loans can be released within 24 hours or a matter of a few days, depending on your credit situation and availability of loan requirements.
In addition, borrowers with low credit rating are also most likely to get approved for this type of loan. If you have a not-so-perfect credit, then this is the best option for you. If you also need a small amount of cash and don’t need to take out a big loan, this loan is ideal. That way, you won’t need to borrow an amount that is more than you need and then have to suffer the burden of paying off the debt later on.
Am I eligible for a short term loan?
This will depend on which UK lender you choose to work with. Every lender is different and they have different policies in terms of processing loan applications. It is your job to research the loan criteria for each lender so that you can choose which ones to apply for accordingly. But short term loans are not nearly as stringent in their requirements such that you can get approved even when you have low to poor credit rating.
Can I get a short term loan with bad credit?
Yes. Borrowers with poor credit rating can still qualify for a short term loan. However, you must expect to pay a higher interest rate on this loan as compared to those with good credit standing.
What fees should I expect when getting a short term loan?
There are different types of fees associated with getting a short term loan that you need to know about. These fees will vary from one lender to another but you can expect to cover most of them. It is important to know what these fees are so you can use this information to compare when finding a reputable lender online.
The interest rate is the first type of fee that you will have to cover for this type of loan. All loans come with interest rates but it will differ on the percentage. Most short term loans carry a 10 to 20 percent interest rate but the exact interest that you will have to pay will vary based on your credit information by the time of your application. The better your credit score, the lower the interest rate.
The processing fee is another cost that is entailed when you obtain a short term loan. This amount is typically deducted from your loan amount so there won’t be a need to shell out cash. Make sure to read the fine print to learn about the details on processing fee for the specific type of loan you want to get.
Finally, late charges are another type of fee that you should expect on your short term loan, but only when you fail to make payments on time.
What are the major forms of short term borrowing?
There are different types of short term loans that are available to choose from and they differ in their characteristics. The following are common forms of short term borrowing: installment loans, payday loans, lines of credit, invoice financing, and merchant cash advances.
How to avoid short term loan scams?
In order to avoid getting scammed when you apply for short term loans online, it is a must to find a reputable lender. Choose a lender that is legitimate and certified by the governing bodies to ensure that you can get fair policies on your loan. If you want to be sure that you are dealing with legitimate lenders in the UK, find an online broker such as Money Pig. This will give you access to a panel of lenders with proper certification and are well-reputed in the industry.
How long can I have the loan for?
On average, a short term loan must be paid off within a period of a few months to no more than a year.
How soon can I receive the loan?
It varies depending on the lender but most short term loans are funded in a short amount of time, such as within a few hours or up to 24 hours. If you can provide the complete list of required documents upon application, then you can receive your loan faster.
How do I find a short term loan lender?
The easiest way to find a lender that can provide you with a short term loan is to go online. Many UK lenders have built a website that makes it easy for their potential borrowers and consumers to find them. They have also used online tools in order to make their loan products more accessible for those who are interested.
Conduct a search for the related term or the specific type of loan you want and you will find a variety of options to choose from. When searching online, however, make sure you do a background research on each company you are dealing with to ensure that you will not get scammed in the process.
Can Money Pig help me find a short term loan lender?
Money Pig is an online loan broker that can help you find a reputable short term loan lender online. It is our commitment to make it easier for individuals in need of extra cash to get the funding they need by matching you with the right lender.
We have an extensive pool of lenders in the UK that we can match with your needs. Feel free to get in touch with us with your personal and financial information. We guarantee to use it only for the purpose of helping you find the right lender that will provide the financial assistance you need, which saves you time and effort.