A Short term loan is any money that is borrowed to be repaid within a short period of time. Also known as a payday loan, this method of financing usually involves a small amount of money which is issued against the borrower's next pay cheque. Short term loans are offered by a variety of lenders around cities or through the online application.
Online Short Term Loans
Short term online lenders provide finances much more conveniently than those obtained from a bank. Many lenders offer these instant loans, including Cash Carrot for those in the UK. The online application process for most online platforms is normally the same and is usually very quick and simple. For instance, to apply for a Cash Carrot Loan you are required to fill an online form, which is available on their website. You should fill out a few personal details and the amount of money you wish to borrow. Once the application is complete, you should receive your money within 24hrs of approval. Online applications are instant and can be made 24/7. Short term loans are therefore the best option if you need money urgently.
Reasons for a short term loan
Here are some examples of situations when a short term loan may benefit you:
- If Your Credit Rating is poor
If you need money urgently and borrowing from banks is not an option due to a not so good or missing credit history, you should consider a short term loan as an alternative option to get the funds you need.
- If You Want a Short-Term Commitment
Long term loans and mortgages have longer repayment periods usually from two years onwards. If your financial need is temporary, it makes more sense to borrow a short term loan as it could save you money in the end. Short term lending has clear deadlines for repayment as opposed to long-term lending which allows you to use the money properly keeping in mind that there is a limited time within which the loan must be repaid.
- If You Receive an Unexpected expense
If you receive an emergency expense that cannot wait until your next pay date and you don't have the cash to pay for it, taking out a payday loan would be a good way to get the necessary funding. The emergency expense could be a parking ticket, a hospital bill, a speeding ticket or a vet bill.
- For home Improvement
Broken electronics, for instance, a washing machine, an iron box, an air conditioner or a cooker can be very inconveniencing. This is because these are the sort of things we can't live easily without but on the other hand relatively expensive to replace. As such a payday loan may be justified for such unexpected repair or replacement payments.
Car and Travel Repairs
You may find yourself in a situation where your car breakdowns and it is essential for your job and you can't afford to the cost of repairs. In such an instance, you can borrow a short-term loan to make repairs right away to avoid putting your livelihood at stake.
You can take out a payday loan when faced with an urgent need to travel which you can't afford such as an interview or an urgent family engagement.
Advantages of a short term loan
This is mainly because they are usually for smaller sums, and borrowed over a short period of time either a few months or a year. You, therefore, avoid the risk of losing your asset in case you are not able to repay the loan.
The interest paid for long-term loans will be more in the long run because of the longer repayment period. On the other hand with Short term loans, you pay less interest for the shorter time you borrow the money.
Am I eligible for a short term loan?
The eligibility criteria for most online short term loans are normally the same. For instance, at Cash Carrot you're required to be the age of 18 years and above. You must provide proof that you are a legal citizen of the UK a valid UK address. To access Cash Carrot finance you must provide proof of consistent employment and income and also have a valid bank account. That is all you need.
If you require some cash urgently you should consider applying for a short term loan. Visit Cash Carrot online platform for quick cash.