Over time millions of people in the UK and other countries have been assisted when they needed the best short-term loan. What, actually, are short-term loans, often also referred to as payday loans? These loans are, typically, a loan that is granted on the understanding that it will be paid back quickly. Even though some of these can be repaid over a fairly lengthy period, the best short-term loans generally are settled quickly.

HOW DOES A SHORT-TERM LOAN DIFFER FROM OTHER LOANS?

When buying a house or a car, or other expensive property, you normally have years to settle the debt. This is not the case with the best short-term loans. Depending on the lender’s criteria, and the loan amount, the best short-term loans should be settled anywhere between one month, and even up to 36 months. This will be decided by the lender or broker the customer is dealing with when they are looking for the best loans.

HOW DOES ONE FIND THE BEST SHORT-TERM LOANS?

The person that is looking for the best short-term loans in the UK and elsewhere, has options. Firstly, one can approach one’s bank and personal banker and ask for a bank overdraught facility. You may also want to borrow on a credit card, or you may want to approach a broker or online service that specializes in the best short-term loans for a fast and easy way to get access to the money you want to borrow, almost immediately. These online brokers and lenders assist thousands and thousands of customers every day. Brokers are introducers that match the customer with the best possible lender for the most favourable outcome to suit their needs and profile.

WHAT INTEREST RATES DO LENDERS AND BROKERS OFFER ON THE BEST LOANS?

Brokers match customers with lenders that will offer them the best short-term loans. They will look at their pool of lenders, then suggest to the customer the best among these. Interest rates are higher than the customer would pay at a bank, but the best short-term loans are offered very quickly, in most cases the very same day, and they are offered without security. Therefore the interest rates on the best short-term loans are high. It will depend on the lender the customer is dealing with, whether the interest is, say, 43% APR or more than a 1 000% APR, for example. It will depend on the amount, on the loan period, and on the terms and conditions of the contract. Dealing with a good, experienced broker is a good start for the customer that needs the best short-term loan.

WHEN MUST THE BEST SHORT-TERM LOANS BE REPAID?

This will depend on the lender that grants the best loans. Some loans, especially small amounts such as £50 or £100, may be expected to be repaid on the customer’s next payday, or as soon as possible as is agreed with the lender of the best short-term loan that they may have met through a broker. Some lenders are more lenient than others and may decide to offer the customer more time to repay the best short-term loan than would be customary. Customers should also find out before the time whether they are allowed to repay their debt sooner than is stipulated, and in so doing save themselves on interest for the best short-term loan. In practice this often means that the smaller the amount one gets on the best short-term loans, the quicker one pays off the debt, and vice versa. On larger amounts you often have more time to repay the debt on the best short-term loan.

WILL I BE ABLE TO REPAY THE BEST SHORT-TERM LOAN?

It is important to know that you are in a position financially to meet all the obligations in terms of which you take out the best short-term loan. This includes repaying the amount borrowed, together with all interest, always on due date. If you cannot give this undertaking, then you should avoid this option, i.e., looking for the best short-term loans. Customers that default on any of their obligations set themselves up for very serious financial trouble in future, such as never being able to borrow money again or receiving judgement against their name, and even court orders, since all applications are carefully checked by lenders of the best short-term loans.

ARE THE BEST SHORT-TERM LOANS REGULATED BY A RESPONSIBLE BODY?

Yes, there is a controlling body that makes sure that brokers and lenders of the best short-term loans operate ethically, professionally and within set limits, also with regard to fair interest rates. This body, the FCA (Financial Conduct Authority) oversees the activities of the lenders of the best short-term loans offered and granted so that customers can always know they are dealing with a responsible broker or lender. This arrangement requires of lenders to hold valid consumer credit licenses at all times. This safeguards the customer against unscrupulous lenders. Therefore it is important to deal with a reputable broker that introduces customers to only licenced lenders. To see a list of the some of the best short term loan lenders have a look at this article from Forbes.

HOW IS THE BEST SHORT-TERM LENDER IDENTIFIED?

It is not always easy to decide who is the best, but the customer that approaches a good, solid broker with a good reputation is assured that they will indeed be introduced to a lender that may be considered to be among the best short-term loans lenders. Because good brokers deal with the best lenders, customers may know that they will be introduced to lenders known for their good interest rates, and the most preferable terms and conditions that will best suit the customer’s profile.

DO THE BEST SHORT-TERM LOAN LENDERS PERFORM CREDIT CHECKS?

All the best short-term loan lenders are required by the FCA to perform credit checks so as to be sure it is fair to offer customers a loan based on specific interest rates and related conditions. It is good to know that responsible lenders will perform a search that does not affect the customer’s application unduly.

CAN THE BEST SHORT-TERM LOANS INFLUENCE CUSTOMERS’ CREDIT RATINGS?

It is possible that your creditworthiness may impact your credit rating negatively if you default on paying back your loans. If you are seen to be a responsible customer, you may indeed improve your credit score, also for future loans.

CAN CUSTOMERS BE CONFIDENT THAT THEIR LOAN APPLICATION WILL BE ACCEPTED?

The customer that approaches a reputable broker should have the best chance at having their short-term loan accepted, since good brokers have access to the services of the best lenders, also a pool of lenders much larger than many other brokers. This improves the customer’s chances of being given the best short-term loan.

HOW QUICKLY CAN THE BEST SHORT-TERM LOANS BE GRANTED?

Customers that deal with the best brokers have the assurance that, should they qualify for one of the best short-term loans, quick – and often instant – decisions can be made to ensure they get the money as quickly as possible.

HOW MUCH CAN BE BORROWED TO ACQUIRE THE BEST SHORT-TERM LOANS?

This will depend on borrowers’ needs and personal circumstances, and from lender to lender. Good brokers introduce customers to those lenders that fit their profile the best so that they have a good chance of being granted the best short-term loan for their needs.