SHORT TERM LOANS
If you’re in need of some money fast, a short term loan could be an ideal solution.
What Is A Short Term Loan?
A short-term loan is a cash loan that you pay back instalments, usually within five months. Whether have a project to pay for, family support, education fees, health care costs, or you just find yourself in a sticky situation, short term cash loans are ideal if you’re in need of cash quickly.How Do Short-Term Loans Work?
After taking out a short-term loan, you’d pay it back in regular instalments, usually between 5 months and a year. Note that, usually, the longer your borrowing window, the more you’d end up paying back in interest. However, the FCA have recently put caps onto the interest rates, meaning daily interest cannot exceed 0.8% per day, in order to help keep short term loans from being as expensive as they once were.
The Pros
Of Short Term Loans?
- 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.
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 (5 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. But if you don’t pay back the loan penalties and fees may be applied and legal proceedings may ensue.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 Clocktower, we aim to match every application with the best loan in terms of affordability and the application requests.
Our Experts
Danny Thomas (Managing Director) & Remy Thomas
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. 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 your credit score. 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.
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 with Clocktower Support Limited.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:
- Do I really need to borrow the money?
- What’s the APR?
- Am I comfortable with the repayments?
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 Clocktower?
To take out a short loan, you will need to be:
- At least 21 years of age
- Have a bank account. This must be the bank account used for the loan to be paid into
- A UK resident
- In full-time employment, taking home at least £1000 a month.
For more details on Short Terms Loans contact us now on
Warning: Late repayment can cause you serious money problems.
For help, go to www.moneyhelper.org.uk
Terms and Conditions apply
An Affordability Assessment will take place for each loan • An initial face to face interview may be required • A recommendation is preferable • Documents such as passports, visas, payslips, bank statements etc will be required
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Clocktower Support Limited (CS Limited) | Est. 2017 | Company number: 10472818 | FCA authorisations number: 782341 | Data Protection ICO number: ZA302229
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Clocktower Support Limited is authorised and regulated by the Financial Conduct Authority FRN 782341