A £500 short term loan can be the answer when you need to borrow money fast, paying it back quickly. It eliminates any embarrassment of having to ask family or friends, maybe taking an advance on your salary, and risking your employer knowing of your financial situation. Short term cash loans can range from £100 to £1,500, or more and are payable within a short period of time, usually a few months.

Eligibility and Affordability

Online lenders will take a few things into consideration, in addition to your credit score. They will check your eligibility and your ability to repay the loan without finding yourself in financial trouble.

Most lenders have minimum eligibility requirements that must be met, which include being eighteen years of age or older and being a resident in the United Kingdom. They also want proof of address, ensure you are employed, either full or part-time and you need a bank account and debit card. You will also need to accept that your credit report will be checked.

The Shortest Term for a Short Term Loan

A £500 short term loan is usually paid back within six months to one year, it is all determined by the amount borrowed. Some will have a shorter payment term of only three months.

Payday loans are the shortest loan term, though they should not be confused with a short term loan. Payday loans are small amounts that are repaid when you receive your next salary. Payday loans are often used as a last resort, as they can result in financial difficulties and ongoing borrowing.

Short term loans are less risky to the borrower, as even though they come with a high-interest rate, you are given a period of time in which to repay the loan. The repayments are in set monthly amounts, that makes them easier to budget for and manage.

How Long Does It Take To Repay a £500 Short Term Loan?

When you take out a £500 short term loan, your monthly repayments are split over a period of three to six months. The interest is added, so you don’t have to worry, the repayment amount includes the loan and interest, payable in full by the agreed term. 

Each lender has its own terms and conditions. Some will spread your payments over six months, while others will only give you one to three months to make the full repayment. As a result, it’s important to identify what the lenders are offering and if you choose a £500 short term loan, only go with the one that best meets your budget and needs.

Does Bad Credit Affect Approval When it Comes to £500 Short Term Loans?

Most direct lenders will consider those with a poor credit rating when applying for a £500 short term loan. A bad credit rating does not necessarily mean your application will be rejected, as lenders take a number of different factors into consideration during the approval process.

While lenders do carry out a credit check before making any final decisions, they also look at your existing debt, employment status, eligibility and affordability. Their obligation is to ensure you can afford the loan you are applying for. You may find the loan more expensive if you have a bad credit rating with a higher interest or APR.

What is the Eligibility Criteria for a £500 Short Term Loan?

Most of the online direct lenders have the same or very similar eligibility criteria, which they expect when someone applies for a £500 short term loan, this includes:

You must be eighteen years of age or older

You must be employed, either full or part-time

You must be a UK resident with a UK address

You must have a UK bank account and debit card