There are many ideas about short-term loans and some are right and some or not. This is often because there are still a lot of people who do not really know much about short-term loans and how they work. This can lead to a lot of confusion. There are, of course, also differences between different lenders and is this can lead to some of the problems as well.
What are short-term loans
Short-term loans are the type of loans offered by lenders who are not traditional banks and building societies. They are the sort of loan which does not last very long, hence the name. They are usually available to all borrowers including those that have a poor credit record. There are different types of loan that are available including payday loans, instalment loans and guarantor loans. They differ in the amount of money that they make available to you to borrow as well as the repayments and cost. If you are looking to take out a loan like this then it is vital that you find out a lot about them. You should think about what you are looking for in a short term loan and then you will be able to decide whether any of these loans suit you needs. It is likely that if you are wondering whether they are quick to arrange that you will be looking for a loan that can provide you with money really quickly.
Are they quick to arrange?
Short-term loans did come about because it was seen that there was a need for people with poor credit records to be able to get money in an emergency. As the money was intended for emergencies it meant that it had to be available quickly. However, there are things which will impact whether you can get the money really quickly.
- Loan type– now that short-term loans have become more sophisticated and there are different types, it can mean that there is a difference in how quickly you can get the money that you need. For example, if you are looking for a guarantor loan, then there may be a delay as the lender will need to check the details of the guarantor and do a credit check on them as well as checking you out as well. It can be worth thinking about which type of loan might be the quickest to arrange, especially if you need the money really quickly. It could be hard to work out, especially if you do not know that much about the different types of loan, but you should be able to contact the lenders and ask them.
- Lender– how quickly it takes to arrange a loan can very much depend on the lender that you choose. Some lenders could be significantly quicker than others. It can be hard to tell and so you may need to contact them to find out. You could contact their customer services departments and ask them how long it is likely to take them to arrange a loan. It might be that they could take longer at different times, perhaps being slower at weekends, for example so it is well worth checking.
- How quick you are – you will also be a factor in how quickly you can get a loan. You will need to make sure that you complete the application correctly and provide all of the information required. If you do not do this, you could find that you will cause a delay. If the lender needs to come back to you to ask for extra information then this could significantly slow down the whole process.
If you need money really quickly then you could feel that doing all this research will slow things down too much when you need the money so quickly. However, you could find that some lenders will take a few days to get you the money that you need, while others will just take a few hours. This difference can make a really big difference to you. You need to decide whether it is worth the risk of having the money take longer to arrive if you do not do this research.
While you are researching it is wise to also compare the cost of the loan and how easy you think that it will be to repay. This because this can have a big impact on you as well. You do not want to find out that because you have rushed into signing up to a loan that you have ended up using a lender that is unnecessarily expensive. You also should make sure that you sign up to one that will have a repayment schedule that will suit you. They can vary and it is good to think about what you think might suit you the best.