Posted by You must have heard a lot of negative things about a short-term loan. There is certainly a misunderstanding of how they work. Most of us consider borrowing a short-term loan when we face unexpected emergencies. And undoubtedly, these loans help to bridge the gap between your payday and unanticipated expenses. Everyone can’t build an emergency fund. In lack of a safety net, a short-term loan proves to be beneficial.
Myth 1
Risky and Expensive
Most of the blogs that you will find on the internet will put these loans into the category of “Risky and Expensive”. However, the truth is they are not. Also, that depends on the lender you have chosen. With us, you do not have to worry about anything as we are very transparent about hidden fees and any other additional costs. These loans have a slightly higher rate of interest as compared to secured loans. Because you do not have to provide any collateral to borrow a short-term loan.
Myth 2
It Takes a Lot of Time
No. It commonly doesn’t. These are handy, and that is the reason people borrow it to resolve their immediate issues. Moreover, they are also known as Online Loans. You can visit the lender’s or broker’s website online and fill-up their loan application form. Lenders will assess your loan eligibility and creditworthiness before making their decision. And within a few minutes, you will get to know their call.
Myth 3
It’s Not Safe
Safety depends on who you choose to deal with for your loan. You will find a lot of lenders or brokers who may offer attractive deals to you. Choose carefully to avoid entering into any scam. Always check their website and evaluate their reliability by visiting the Financial Services Register. If you do not find any details of their firm on the register, then it might be a scam. Try to associate with lenders and brokers who are registered by the industry watchdog – the Financial Conduct Authority.
Myth 4
It’s a Trap
It is NOT, only if you use it wisely and responsibly. Being a responsible borrower, know your affordability before borrowing money. Taking out a loan that you cannot afford to repay will prove to be hazardous for your financial fitness. If you fall behind the repayments, your credit score will be damaged. A poor score may restrict your chances for applying a personal loan for up to the next six years.
Myth 5
Paying Back the Loan is Difficult
These are instalment loans, and you have to make the repayments in instalments. There is no pressure on you to make a lump sum repayment towards your loan. You can spread the cost of repayments over 12 months to repay without any trouble.
Final Thoughts
You can borrow a short-term loan up to 1000 pounds with us for 12 months. We will recommend you to acquire a loan only if you can afford the repayments. We’re authorised by the Financial Conduct Authority as a credit broker in the United Kingdom. We have a panel of regulated lenders who will lend you money if your loan application gets approved.
To apply for a short-term loan with us, Click Here.
