Short Term Loans

A short term loan is a brief, unsecured method of borrowing, that can usually be set up very quickly. Such a loan could be used to help individuals manage unforeseen circumstances such as a financial emergency, or perhaps a rush of bills landing shortly before payday.

As with most borrowing solutions, short-term loans are expected to be repaid within a specific period of time - usually a minimum term of at least sixty days. By the time your agreed term is over, you will have been expected to pay back the original amount you borrowed, including the interest that was accrued in that time.

Short-term loans are not suitable for everyone and they are not the answer for people in serious debt due to the high interest rates. With some lenders the loan, once approved, can reach a person's bank account instantly.

Unsecured means that the loan is only supported by the borrower's creditworthiness - ie, their credit rating. For contrast, a secured loan uses an asset such as the borrower's home as collateral. Borrowers must usually have good credit ratings to be accepted for unsecured loans.

Short Term Loans FAQ

Can I make a short term loan work for me?

Are there any alternatives to short term loans?

Should I get a short term loan?

How much will a short term loan cost?

Can I repay my short term loan early?

How do I make repayments on my loan?

What will happen if I miss a payment on a Short Term Loan?

What's the difference between a short-term loan and a payday loan?

What is an unauthorised lender, and why should I avoid them?

What should I do if I have been declined for a loan?

Where can I find out more about a lender?

Where can I get advice and help for debt issues?

What is Reponsible Lending?

How are short term loans regulated?

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.