Are you unable to decide if you need a short-term loan or a long-term loan? If you are worried that you won’t be able to pay on time you must know which kind of loan is suitable for your need. You don’t want to bring your credit rating down to the floor. So, you must be very careful when you apply for a loan and take it only if you know that you will be able to pay back on time.
What are short-term loans?
A short-term loan is a loan where the payback period is shorter. If you have to pay back your loans within 9 months, then they are usually considered to be short-term uk payday loans online. If the period extends over a year, it is termed as a long-term loan. Most of the lenders of these types of loans will let you repay your loan earlier with no penalties.
To be eligible for a short-term loan in the UK you must be a resident of the UK and be over 18 years old. In addition to this, you must have a regular income be it from a pension, employment, or other benefits. The application is easy and quick, especially if you visit their official website.
The best thing about this is that you can do the complete application process online without roaming around offices and delays. LoanPig offers the best short-term loans in the market with flexible repayment options and competitive interest rates. They are regulated by the FCA and are extremely trustworthy.
They act as direct lenders and brokers for other FCA approved lenders. They have a great customer care team to help you with the process and consider applications from people with financial difficulties in the past.
Cases where you need a short-term loan:
Here are a few cases where you might need a short-term loan:
Developing your career:
You might have to enrol yourself in programs, certifications, and schoolings that can cost you several dollars for developing a career. If you don’t have so much money in your bank, you can take a short-term loan to fulfill your needs.
If you are trying to do a start-up or suffering from a business situation, you might want to consider taking a loan to cover up your expenses. Examples of such situations are listed below:
- Payment for start-up expenses
- Paying salaries
- Covering the gaps in cash flow
- To avoid long term debt
- To access discounts on inventory
Car and home repairs:
If you don’t have enough money to fix your car or problems at your home like roofing and leakage, you can take a short-term loan quickly as the approval and application process is simple.
Improving the credit rating:
As short-term loans are high-risk loans, if you pay them back on time, it will uplift your credit rating very significantly. People take short term loans one to two years before getting a mortgage as a good credit rating will help in getting favourable mortgage terms.