Billions and billions are lent and borrowed in the UK every year. While many people borrow money for mortgages, vehicles or education, those are far from the only reasons people borrow money. There are emergencies, large purchases or other unexpected events that can require some extra money that you just might not have.
Also, while mortgages, car loans, and student loans often have repayment periods spanning multiple years, sometimes those long term loans aren’t right for your situation. Thankfully, short term loans exist. These loans can be as little as a few hundred dollars (up to a few thousand) and can have terms and repayment periods as short as a month or two.
But with so many providers of short term loans out there, how do you go about finding the best ones? This article is going to look at a few tips to help you find the best short term loans for you. We will look at how to compare one short term loan to another, so you always know you’re getting the best loan for your unique situation.
Expand Your Search
When looking for a loan, it is normal to begin by looking around in your local area. Depending on where you live, there is a good chance that your city or town has several lenders that offer short term loans. While you might find some solid options, you should be sure to expand your search.
By that, we mean that you should be sure to look online. There are some great and reputable companies that offer short term loan options that rival the best lenders in your area. There are many different benefits to looking online for short term loans such as simpler application processes, potentially lower fees, and even quicker access to your funds.
Know the Factors/ Terms for Each Loan
With so many people offering loans, you need to be aware of the factors and terms of the loan that matter the most to you. While the interest rate is often the first one people look at (for good reason), it is not the only factor in deciding which loan is better. You also need to look at things like the minimum and maximum borrowing amounts, the length of the loan, and any fees or extra charges.
If you examine all of these factors, it should paint a picture of which loan is the right for your situation. Some people might want a smaller loan with a short term, while others might be willing to endure a few extra fees to get a longer or slightly larger loan.
Watch Out For Scams
While most short term and other types of loans you will see are legitimate, there is also a wide range of loan scams you might encounter. Unfortunately, these loan scams are becoming a huge problem in the U.K and consumers are losing millions and millions annually. Those looking for loans are often targeted by these scammers.
So how do you know whether a loan or lender is legitimate or a rip-off? While loan scams can be hard to identify, there are a few things you can look out for. If a lender asks for an upfront fee, it is best to steer clear. Also, if a lender makes crazy guarantees or seems too good to be true, it probably is. If you feel uneasy about a loan or a particular lender, it is best to trust your gut and avoid them.
We hope that this article has been able to help you find the best short term loan for your needs.