What Are Same Day or Small Short Term Loans Online?
At Fast Loan UK, we can offer our customers the best short term loans online to help cover a short term expense. Generally, cheap short term loans are applied for online over a limited-term basis which can be for a lending period of a few days up to 12 months. This is the way many short term loans UK direct lenders work. However, our simple, straight-forward application and willingness to look at your affordability as well as your credit score puts us ahead of the rest.
How do Short Loans Work?
Applying and receiving small short term loans is a straightforward process, especially when you’re looking for funds quickly. After successfully applying for short loans, you’ll be required to repay it within the stipulated period set out through regular instalments. If you can afford to, you have the option of paying off your loan early before the short loan’s agreement ends. Since the longer you take to repay, the more you end up paying, this is an ideal solution to avoid additional costs. Most short term loans direct lenders use an online application process where you’ll be required to fill in your personal details. Once this is completed, they’ll go ahead and perform the necessary credit checks before approving or rejecting your cheap short term loans application. This process is generally computer automated, meaning you can receive an instant decision. In some cases, this can be completed in only a matter of minutes. If your application is approved, you can receive the money deposited into your account within just a few hours, leaving more time for you to put the finds to good use. This is fully dependent on the short term loans UK direct lender you apply through of course.
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Types of Small Short Term Loans Available:
- Payday loans – These type of short loans are usually taken out over no more than 2 months with 1 scheduled repayment. They are referred to as Payday loans as they are normally paid back to the lender on your payday. These types of short term loans have generated bad press over the last few years due to many loan companies offering them lending irresponsibly. Fortunately for borrowers, the industry has since been regulated further to ensure only those lenders who are offering short loans responsibly to people are still available. These companies who are lending to people who can afford to repay their loan have managed to gain permission from the Financial Conduct Authority (FCA) regulator to remain lending.
- Instalment loans - Fast Loan UK is proud to be one of the pioneers of the online short term instalment loan. These are generally lent over 3-12 months with set monthly repayments. We’re proud to be able to offer one of the most flexible instalment loans on the market. Our customers can choose to make weekly, fortnightly or monthly repayments based on their unique set of circumstances. Our short term loans have flexible repayments and are not set in stone like other short term loans UK direct lenders who may only offer fixed loan periods. We ensure that our customers will never be charged for missing payments and all our customers get assigned independent Customer Care Managers, who will assist in working out suitable loans based on your own specific set of requirements.
Cheap short term loans are now subject to an industry-wide interest rate cap. The means that the maximum daily interest rate is 0.8% a day. The borrower of short term loans will never pay back more in interest than 100% of the initial loan value. This provides peace of mind for many customers and we are proud to be one of the leading short term loans direct lenders on the market today. Where many of the most prominent short term loans lending brands opt to charge this maximum daily interest rate, our average daily interest rate is a great deal lower than this.
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Why Are These Types of Short Loans Expensive?
Due to the high-risk nature of this type of lending, many borrowers will generally pay a higher rate of interest than they would with a conventional long-term loan. This is because these short loans are a form of unsecured borrowing. The lender has no security against the loan itself, unlike with secured borrowing such as a mortgage or higher purchase loan on a car, for example. Therefore, if a borrower decides not to repay the loan, the lender could simply take repossession of the borrower’s home or property in return. Lenders, therefore, will charge higher interest rates to their customers due to the increased exposure to the risk of non-payment and bad debt circumstances.
Here at Fast Loan UK, we mitigate against this risk by carrying out thorough credit and affordability assessments, designed to protect you just as much as us as short term loans direct lenders. We have also built strong bonds with our customers and long-term, friendly relationships. Therefore, our lending is generally cheaper than many of our competitors. If you require more information on borrowing or expert advice, please contact the Money Advice Service for impartial, independent financial advice.
What Are the Advantages of Short Term Loans?
- You’ll receive immediate access to funds when you’re in urgent need or suddenly face unexpected expenses?
- The best short term loans are quick to obtain, with often funds being deposited into your bank account within hours if you’re approved.
- They are a flexible option since you can pay over a period of time in instalments or a lump sum.
What Are the Disadvantages of Short Term Loans?
- Small short term loans, especially if you have bad credit, can be costly compared to other credit facilities available, due to the higher interest rates involved
- Some short term loans UK direct lenders incorporate additional fees which makes the cost of borrowing much higher. Please note, Fast Loan UK is a transparent lender, regulated by the FSA and does not charge you additional fees.
Are Short Terms Loans the Type of Borrowing for Me?
When taking out the best short term loans in the UK, it’s important to think carefully about your circumstances and whether you can afford the repayments you are requesting. You need to ask yourself whether borrowing the money is going to help plug a hole in your immediate financial situation, without causing further trouble down the line. It is not recommended to prolong long-term financial problems with short loans of this nature, as it could just make the problem worse for you later down the line.
If you think you are experiencing financial issues and struggling to pay your bills and manage your debt. We would advise you to seek free and independent advice from debt charities such as Citizens Advice. Additionally, always check your credit rating with credit check providers.
How Much Will Small Short Term Loans Cost to Repay?
This is dependent on how much you wish to borrow, with our customers able to borrow anywhere between £50 and £2000. It also depends on how long you choose to take out the loan for with the longer you choose to repay meaning a higher amount of interest in total. You will need to decide on if you would rather have lower repayments each week or month, or a lower overall short term loans total to repay. Through us, you will never have to pay 100% more than what you borrowed originally and when you go through the application process, you will see before signing your agreement how much you will be paying back. You’ll also be able to discuss any queries you may have with your dedicated Customer Care
Apply online today for short term loans. If you have any queries, please check our FAQs or contact us directly for further information.