Short term loans are great for life’s little emergencies, especially with things happening when you least expect them to. I think these loans are a great idea and I have come up with just a few of the reasons that they can really help you out in a time of need.
One of the best things about a short term loan is that it is very very flexible, you are never locked into a specific period of time. You can borrow the money for a flexible period of time and you can even pay it off early if you wish. This is perfect for those that are just looking to bridge the gap between a few extra expenses and their next pay day.
Of course you could go to a bank, but this would mean that you would need to go through a lengthy application process that may not exactly suit your current situation. Most short term loans can be paid into your account on the same day, so this can be a much better option for people needing money right now.
Smaller minimum amounts
If you went to a bank you would most certainly be looking at a higher minimum amount and if you wanted something lower, they would most likely recommend a credit card to you. These take time to get, as we discussed above. They also have a much higher minimum amount compared to the short term loans, which can be as low as £50! This is perfect for when you just need to little bit extra, rather than £500. This is great because you won’t be tempted to spend an unnecessary amount.
Compared to bank loans and credit cards, short term loans have a much lower criteria, because they are much smaller in size and therefore a much lower risk for lenders. This also means that they can be approved more often and much faster than other loans, as we touched on above.
Short term loans are also great because they are not secured loans and do not require you to have collateral in order to get them. This is perfect for those that do not have a huge number of assets and just need some fast cash.