What are Short Term Loans?
There are many types of loan, such as mortgages, guarantor, payday, personal, secured, unsecured and car loans available these days, the following information will give you an idea of what short term loans are and the differences.
Short term loans usually have a smaller loan amount range for you to choose from, this can range between £100 – £1500 depending on the lender and your status. Also, the repayment period can range from 2 – 6 months and even longer for some lenders
Many online lenders, including BingoLoans, will give you a decision very quickly. If you are successful in satisfying the criteria of the lender, your funds will usually be in your bank the same day (depending on what time you apply for the loan and the lender’s term & conditions for issuing the funds).
These types of loans, like Payday loans, were originally setup to offer people who didn’t have access to mainstream credit from banks and other lenders.
These days they have become a lifeline for anyone who needs money quickly whether you have good credit or bad, because people with good credit still have emergencies the same as everyone else.
Is a short term loan the best solution?
For many people, short term loans can be useful for covering emergency costs whether they have good or poor credit. I am sure that by now you are familiar with your credit score? If you aren’t subscribed to a free forever credit reporting service, then you need to be, it’s free so what have you go to lose?
Short term loans and payday loans were originally designed to offer finance to those people with bad or just below average credit ratings who were being refused credit.
The banks, building societies and financial institutions who issued secured and unsecured loans, used to offer loans to people with bad credit but now they tend to close their doors so it might be that you have no other option if you need money quickly.
The credit card companies also followed suit, so you may have no access to credit cards or other mainstream credit either.
We would all like to have an amount of money set aside for a rainy day, but sometimes that emergency unexpected cost is larger than your savings can cover.
Utility bills can be scheduled to come out on certain days, but just when you think you know how much they are going to be each month, one unexpected amount hits you.
So, there are a number of situations you may find yourself in that warrant a short term loan as the best or only solution, but please be careful, these types of loan are not sustainable as a goto when things go wrong, if you find you are relying on this type of credit then please seek some advice and let them help you get back on track.
What can short term loans be used for?
It is easy for us to dictate what you should use a short term loans for, but the answer is, anything really, but be careful not to fall into the trap of taking them out every few months, because they are not for this purpose.
A good time to apply for a short term loan would be when something like a boiler, fridge, car or washing machine packs up, something that is required in everyday life. In an ideal world, if you knew the car was on it’s last legs then you’d have time to put some money aside to get it repaired, but if it breaks down unexpectedly, then you need money quickly so a short term loan could be the answer.
Will I qualify for a short term loan?
Until we have received all of your personal details, including your income and outgoings, your credit report (for reference) and an understanding that offering you a short term loan would be in your interest and not put you under any financial pressure, we wouldn’t know whether you would qualify for a loan with us.
So, the good news is that with BingoLoans, it doesn’t matter if you have good credit and just need a short term loan, over a couple of months for upto £1500 (rather than having to take out a personal loan over 12mths+) or you have a poor credit rating, BingoLoans will look at your application and gather all the relevant details we need to make a decision that best suits ourselves and you.
Do I need a guarantor?
Guarantor loans are totally different to short term loans, they require you to use a friend, colleague or family member to act as a guarantor so that if you cannot pay the loan back, for whatever reason, they will be responsible for making up the payments you have missed.
To apply for a BingoLoans short term loan, you do not need a guarantor.