What You DON’T Know About Short Term Loans Online
There are most likely a lot of things that you don’t know about short term loans online. Too many people never get one of these loans simply because they are not educated on them. If you only need to borrow a small amount of money, the internet holds the key. This is a fantastic borrowing solution that is well suited to virtually everyone. You don’t want to do anything before learning everything there is to know about these loans.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Bad Credit is Not a Major Problem (But there is a credit check)
You don’t need to have very good credit to get most short term loans. In fact, even very low credit ratings are usually not an issue. While these lenders do run credit checks on applicants, it is usually not typically the most important factor. Poor credit alone is unlikely to stop you from getting approved.
It is important to avoid any lender that claims they do not run a credit check. This is an unavoidable part of borrowing money, regardless of where you go. But this doesn’t mean that your application won’t be approved, even if your score is low.
You Can Get Help Finding the Best Loan
A lot of people don’t realise that they don’t have to spend a long time doing research online to find the best loan deal. Credit brokers such as Boutell exist for the sole purpose of assisting people in finding a great little loan to match their needs. These brokers work hard to make sure that all of your borrowing requirements are met. This completely eliminates the need to worry about whether or not you have chosen the right lender.
Not All Loans Have a Two-Week Term
While many short term loans online have a payback period of two weeks, this is not always the case. Some lenders are willing to give borrowers more time to pay back what they borrow if necessary. In fact, it is not completely unheard of for private lending companies to give borrowers up to a full month to pay back the full amount of their loans.
It Only Takes Minutes to Apply
When we say that it only takes a matter of minutes to fill out an online short term loan application, we really mean it. You won‘t have to set aside a significant portion of your day to fill out tedious paperwork. The entire process is done online and couldn’t be any simpler. You will see empty spaces for all of the required information you must submit. Each empty field is labelled so you know exactly what to put.
Only Private Lenders Give Out Short Term Loans
You will be hard pressed to find a bank that is willing to give out a short term loan for just £200 or £300. Only private companies give out these instant loans, and most of them are based online. This makes it easier to apply and borrow money fast. When you are in need of a short term loan, you’ll want to immediately start looking at these companies. It is very unlikely that your bank or credit union will be able to help you out.
Self-Employed People Can Get Approved
Even self-employed people who own their own business can easily get approved for short term online loans. These loans are actually perfect for entrepreneurs who need funds for new equipment or something else entirely. You’ll still be required to submit proof of income like anyone else.
If you want to start up a business or expand an existing operation, this is an option that you should certainly explore. It can provide you with a means of obtaining a significant amount of money without a long and annoying waiting period.
They Are Popular with Students
Thousands of college students throughout the UK apply for short term loans online each year. These loans are perfect for young people who are still in school for many reasons. Limited cash flow and a hectic schedule can make this borrowing option particularly attractive.
You Aren’t Required to Accept any Loan Offer
Some people mistakenly believe that they are required to accept an offer if they get approved by a certain lender. You are only required to pay back the loan if you agree to the offer by giving the lender your signature. You can look over as many of these offers as you want before choosing one in particular. In fact, it is recommended that you do so to avoid making any regrettable decisions.
APR Varies Depending on How Much You Borrow
Another thing that some people don’t know about online loans from private lenders is that the APR or interest rate depends on how much you borrow. The larger the amount, the more interest you can expect to incur. There are other factors that affect this though, such as your credit rating and overall history. Many of these lenders list their interest rates right on their website. This provides you with an easy way to find out how much you can expect to pay for your loan in total.
No Collateral is Needed
Short term online loans do not require any collateral to be put up. This makes these loans very low risk, which is a good thing for most borrowers. You won’t have to risk losing any of your property, but it is still crucial to pay everything back on time.
There are MANY Lenders
You will have lots of lenders to choose from for a short term online loan. This is another good reason to use a credit broker like Boutell. The sheer number of these lenders can be overwhelming when you need to pick just one. All of these options also means that you are likely to find one to match your needs, especially with the right help. There are far more of these lenders than there are banks in your area.
It’s Completely Legitimate
Just because you aren’t borrowing money from a bank doesn’t mean that you aren’t engaging in a legitimate transaction. The truth is that private lenders are licensed to conduct this sort of business, so it’s not just some shady deal. You won’t have to worry about not getting your money if you are approved. This is a perfectly legitimate and widely accepted borrowing option in the UK.
Applying Doesn’t Hurt Your Credit Score
It is a common misconception that submitting a loan application hurts a person’s credit score. While your rating might temporarily go down a tiny bit, it is definitely nothing to be concerned about. As long as you aren’t submitting a bunch of applications within a short period of time, your credit will be just fine. This is why it is always better to apply with the right lender rather than with a bunch of random lenders.
Only UK Residents Are Eligible
Applying for a loan online can get a little confusing at times, but it is important to know the facts. You will only be able to get approved for one of these loans if you are a legal resident of the United Kingdom. It is not recommended that you apply for a loan with a company that is not based in the UK. The lender is going to request proof of ID to confirm this along with your age.
Funds are Transferred Electronically
Once you are approved for a short term online loan, the funds will be transferred electronically right to your current account. This process can take as little as just one hour, depending on the lender. This means that you won’t have to deal with having to wait for a paper cheque like you would with a bank loan.
They Are Designed for Emergencies
Short term online loans are pretty much designed for financial emergencies. There are a huge variety of important expenses that can suddenly come up with little to no warning. The fast approval and dispersal of funds are ideal for these kinds of situations.
What you don’t know about short term loans online could be working against you financially. If you ever find yourself in need of money with no questions asked, this is a superb solution. It is a borrowing option that continues to work well for many people in the UK. There are lots of different people who can benefit from these loans, including entrepreneurs, homeowners, students, and many more. Pretty much anyone who is in a tight financial bind should see what these loans have to offer before proceeding.