Do You Need Short Term Loans?

Using short term loans may be something to consider if you need a fast injection of cash.

Unlike more traditional loans with repayment commitments over many months or even years, short term loans are typically for relatively small amounts of money paid back in one installment.

The repayment often happens on or around your next payday and that's why they're sometimes referred to as payday loans.

Let's look at a typical application and repayment process.

Applying and credit history

The application process is typically easy and geared-up to speed.

You make a simplified application online and you'll often receive a very fast response.

The good news is that because the sums borrowed are smaller and the loan period shorter, the loan provider typically performs only a reduced credit check. That means that, unlike some conventional loans, in the case of a payday loan some forms of credit history problems may often be acceptable.

Requirements

The process may vary by provider but typically you'll need:

• to be in permanent employment with a regular income;
• to have a bank account and a debit card for it;
• a verifiable UK address;
• to be aged 18 or over;
• to be asking for a loan that makes sense in terms of your income.

The payment

Once approved, the loan will be sent to your bank account.

If your bank is one that can accept instant bank-to-bank transfers, then the loan could be available in your account within as little as a couple of hours.

If it can't, the loan will typically be available in your account the following morning (assuming that it is not a weekend).

Repayment

At the time you take out the payday loan, you will agree with the provider the date it will be repaid - that's typically your next or next-but-one payday.

On that date the loan provider will debit your bank account to recover the loan plus their charges - which will have been agreed with you in advance.

That is then the end of the loan and you have no further debt or obligations. In fact, you're free to apply for another loan if you need it.

Repayment problems with short term loans

If you are unable to repay the loan on the agreed date, you should notify the loan provider in advance.

Typically they may understand that things can go wrong and problems arise. They may be able to amicably arrange a revised repayment date that's suitable for you, although some additional charges may apply.

Payday loan providers

Payday short term loans can typically be found through online providers on the internet.

Gary Miller-Cheevers is the CEO of Speed-e-Loans, a UK Based payday loans lender. Speed-e-loans.com is a practical alternative to banks that can no longer help their customers with their short term financial needs. Our mission is to provide instant decisions and two hour money whenever they need it.