Short Term Loans
Short term loans typically are loans over 1 week to a 12 month term - Payday loans allow you to cover very short term financial needs where teh loan size is typically no more than £1,000 to a bridging loan where the lender will normally require security for the loan. Short term loans are expensive so it is important to consider whether you really need this type of finance. Before you go for a particular loan deal, make sure you compare the market because interest rates can be very high.
The two most popular short term loans available are:
- Payday Loan: a payday loan is a cash advance – usually of between £50 and £500 taken for a very temporary cash shortfall and the deal is that the cash be paid back by the next pay day. These loans are usually taken out for unexpected costs like repairs, or to ensure payment of direct debits.
- Bridging Loan: this is a loan taken out to solve a temporary cash shortfall that has arisen from buying a property or business or paying for a renovation. They are more risky for the lender than the usual homeowner loan, so carry higher rates. Bridging loans are usually taken out for a term of between a month and a year.
You can use our online loan comparison service to compare short term loans and find the best one for your circumstances, just click on the links above.