Short term loans are designed to provide you a bridge till your next pay day. They are also commonly referred to as instant loans, pay day loans or text loans. The procedure for applying for short term loans is the same as these other loans and the loan amount is usually sanctioned quickly. The repayment date is also set within a month. As soon as the consumer gets their salary, the lender will withdraw the borrowed amount and a fee from the account and the consumer is free of the loan. With so many people in a credit crunch, it is completely acceptable for people to try for short term loans. Most people can try online through the internet and they are usually approved almost instantly for the loan.
Who should not apply for the loan?
Most customers are good candidates for the loan. If you are citizen of the UK and you are over the age of 18, you can apply to any short tem loan website and get your loan. However, a few people are not good candidates for short term loans. For example, if you already have a loan or many loans, you may not be able to pay the interest rate that is applicable on short term loans. Most short term loans have an APR rate of about 1000% of more. As this rate is for a short term, you are effectively paying back 125 pounds on a loan of 100 pounds. If you have many loans that have to be paid back per month, you could effectively be robbing Peter to pay Paul. A pay day lender will not issue a short term loan to you if have other loans that are cutting into more than 20% of your pay check. This is because you could be robbing Peter to pay Paul and that is illegal. However, most sites will lend to you even if you have a bad credit history, if you have declared bankruptcy or have financial problems at present. We suggest you check with each short term lender before you finalize the loan process.
Is there a limit on the short term loan?
Yes there is as most first time lenders are not allowed to borrow more than 100 pounds. However, if you pay back the loan on time the first time, the short term loans website will automatically approve you for a larger amount. You can then negotiate for a higher loan amount. You can reapply for a loan with the company as many times as you want provided you pay back the loans on time. Every time, you take a loan and pay it back, your TRUST RATING rises and you are automatically eligible for higher amounts. However, we do caution you to borrow only the amount that you can pay back.
Short term loans are meant to be paid back quickly and we suggest that you evaluate your bank account and your financial needs before you take on the loan. Make sure that you borrow only as much as you can pay it back and do not roll over the loan. Pay the loan back quickly and you should be fine.