Short Term Loans

Where Should I go for Short Term Loans?

If you decide that a short term loan is the right thing for you, then you might not then know where to look for them. There are different places that you can look but it is nice to know exactly where might be a good place so that you can find as many as possible. This is because it is a good idea to compare them so that you can be sure that you are getting the very best value for money from the loan. There are different places that you can look for the loans.

Comparison websites

There are some websites which will compare the different short-term loans. They will look at different lenders and they will normally compare them on price. This is something which is useful to some extent but you need to be careful with how you use the information. The reason for this is that these sites will often compare the lenders on interest rates. This might seem great because you might be keen to choose the lender with the lowest interest rate. However, this might not be as good as it seems.

Firstly, you might find that interest rates are not calculate din the same way. It might be that some lenders quote the APR and some the AER. This might seem like it will not make a difference but it can actually be very significant. This is because the APR is just the annual percentage rate which means the rate you would be charged if you owed the money for a year. The AER is the annual equivalent rate and includes any fees that you would be charged as well. It is often the case with a short-term loans for bad credit that there are extra fees as well as interest charged – perhaps there are administration fees, setup fees or things like this. This means that you have to be sure that if you are comparing costs that you are comparing them like for like.

It is also often the case that a comparison website will only include some lenders and not all of them. This could be because they want to keep the information brief or that they feel that the ones they include are the best. There may also be some lenders that do not appear on comparison websites and always deal directly with customers. There may also be some companies that pay more commission on leads than others so will be favoured on these sites.

Review websites

Review websites has a few problems too. This is because they may also be influenced by commission. Some short term loans will pay commission on leads. This means that if someone links to them, using an affiliate link, they will pay some commission. A lot of people therefore use these links on their review sites. This means that they might tend to only pick the lenders that pay them high commission or be tempted to review those lenders in a more positive light.

Although this is a problem and will mean that you should not take that much notice of the ratings, it can be a good idea to have a look at them anyway. This might sound odd, but it can be an easy way to see which lenders are available. If you have never used this sort of loan before, you will not know what lenders are available and it will help you to have a better idea of who to choose from.

Personal finance websites

These sites may still have come bias and they may not even have much mention of payday loans. However, if there is a personal finance website that you trust then it could be a good place to look. It might have some useful information about payday loans and lenders that you might be able to use as part of your research.

Search engines

These can be the trickiest to use in some ways. This is because when you search you will get loads of results that you will have to sift through. It could be that you get single pages which are payday lenders but you might also get pages which have reviews of different lenders, comparison sites and things like this and you will have to visit each page to find the right ones. Then you will have to look at each lender in detail to decide which will be the best.

It can be a lot of work, but it will be worth it as you are likely to be able to find the lender that will offer you the best value for money. Unfortunately, there is no one place to go to find out about payday loans and to find the best lender so it can take quite a bit of work to be able to work it all out.

Are Short Term Loans Good for Deposits?

If you need a deposit for something, perhaps for a property, then you may consider borrowing the money. This can be useful for several reasons, but may not always be a good idea. It is worth having an understanding of the advantages and disadvantages of using a short term loan for a deposit and then you will be able to decide whether it is a good idea for you to try or whether you might be better off forgetting it!

Advantages

  • Quick – one big advantage of using a short term loan for a deposit is that it is really fast. You should be able to organise it really quickly and this means that you will have the money fast. Some lenders may be able to get you the money within a few hours. You will need to make sure that you complete the forms correctly and send them all the right paperwork so that you get it done quickly or else you may find that you slow things down yourself. Hopefully you will be quick and then you will get the money into your account quickly.  This means that you will be able to use the money really quickly too. So, if you need the deposit fast it can be a great advantage. It might be that you need to use the deposit to secure a property you want and so the quicker you get it the better.
  • Easy – it can be reassuring to know that applying for a short term loan is really easy. It can sometimes be really complicated to apply for loans. You may no longer have to go and visit the bank manager, but there is still likely to be a lot of paperwork to organise which can take a lot of time. With a short-term loan it is likely that you will be able to apply online or by telephone. This will be a lot easier and the application forms are also designed to be really easy so that you can get your money as quickly as possible.

Disadvantages

  • have to repay – you will, of course, have to repay the loan. This may or may not be tricky, it will all depend on your financial situation and how much you have borrowed. With a short-term loan it is likely that you will need to repay it quickly. You might have to repay it all when you next get paid or you may be able to repay it in a few instalments. Either way, you will have to repay it really quickly. The problem with this is that you might need some extra money if you have just paid a deposit on a home. Often when you move, you find that there are extra things to pay out. You may have to pay for removals, for a start. You may also need to pay for extras for the new house such as curtains, lamps, rugs, decorating and all sorts of bits and pieces.

It is therefore really important to make sure that you are able to repay it. You need to be really careful to calculate whether you think that you will have enough money. Make sure that you calculate how much you will have to repay and when and then see whether you feel that you will be able to afford that. Look carefully at your bank statements and what you can normally afford and bear in mind what might change as a result of your moving.

  • Expensive – there are always costs when you borrow money. This means that it is important to work out whether you feel that the loan is worth those costs. You will find that different loans have different costs but they all have some. Make sure that you are aware of how much they will cost and then you will be able to decide whether you think that it is worth it. If you are not sure, then you should be able to ask the lender. Make sure that you check out the cost of the interest and any other costs as well and add them together to work out the full cost. Then you can decide whether you feel that it is worth that cost. It can also be worth comparing different lenders. You will find that they vary in how much they charge so it is well worth comparing them to see how the prices compare. It is good to make sure that you are not just comparing them on the interest rate but compare the full cost. Then you will know exactly which one is the cheapest and you will be able to go for that one if you want to spend the least amount of money. Of course, you may decide that you want a slightly more expensive loan because it had other features that you prefer.
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