Short-term loans don’t have to be difficult. Often, when you are looking for a short -term loan, you don’t have the time to compare every loan that’s out there because you need access to money quickly without the hassle. This is why short-term loans through a loan broker are such a popular choice for borrowers in the UK. They provide access to finance without a large time commitment while also still having the ability to compare offers from multiple lenders.
In this article the Oyster Loan team explain:
- What a short-term loan is,
- What a short-term loan is used for,
- Whether you need a good credit score for a short-term loan,
- What makes short-term loans easy and convenient, and
- Why you should choose a broker.
A short-term loan is a form of unsecured finance that you pay off in instalments. Unsecured means that you don’t have to put up any form of collateral – that’s usually your home like you would pledge on a mortgage loan. This means that you can get access to finance without needing to risk your house or any other valuable or cherished asset that you own.
Short-term loans are normally from anywhere between £200 and £5,000 and sometimes even more than that. You pay off the loan over a set period of time which you agree with your loan provider beforehand. This allows you to make manageable repayments when it comes time to repay what you owe.
Short-term loans can be used for anything that you need finance for. Typically, they are used to fund one-off purchases that you otherwise would not be able to afford. This means you can make the purchase with the loan and spread the costs of the payment over a longer period of time.
Short-term loans should ideally be used to pay for emergency situations like repairs on your car, emergency medical treatment (dental and optical), and for replacing a boiler if it’s broken.
Short-term loan providers use your credit score to establish the likelihood of you paying back your loan in full and on time. Your credit score is a number that is given to you based on your track record of making loan repayments as well as other things like paying your bills on time.
When you have a good credit score, you will have a lot of options available to you when it comes to taking out a short-term loan. This is because all of the loan providers can see that you have paid back loans in the past, so you will most likely do it again.
If you have a low credit score, you can still get access to short-term finance. There are many loan providers who specialise in dealing with borrowers with bad credit scores and Oyster Loan has partnerships with many of them.
Short-term loans are one of the simplest ways to raise the money that you need. If you have an emergency that needs paying for and you can’t find a friend or family member who is willing to lend you the money, and banks take too long to send you the money, short-term loans are the best option.
Additionally, short-term loans can be used to consolidate any other outstanding debts you may have. This means you take out a short-term loan that covers the costs of all of your remaining debts so you only have to keep track of one monthly payment instead of several.
Doing this also boosts your credit score and this will come in very handy if you should choose to take out a larger loan or a mortgage in the future.
Loan brokers are different to direct lenders. Instead of providing you with the finance, loan brokers send your application to multiple loan providers to get you the best quote. This means you don’t have to spend hours and hours researching different loan providers before you gain access to finance.
Additionally, because loan brokers work with many different lenders, they are able to find you some of the most competitive quotes on the market. Why waste your time comparing three different loan providers when a broker can do the same with hundreds in just a few seconds?
The best part is that it doesn’t cost you a penny. Most loan brokers, like Oyster Loan, are completely free to use and they deliver borrowers quick and favourable results
Get a short-term loan with Oyster
Oyster Loan is a loan broker, not a provider. This means that we work with our trusted network of FCA (Financial Conduct Authority – the government regulatory body for short-term loans) authorised lenders.
It starts with you entering in your details to our registration form. We will then ask you about how much you earn, how long you have been in work for, how much money you would like to borrow, and how long you would like to pay back the money. Then, we conduct a quick credit check on you.
Once that is out of the way, we then match your profile to different lenders’ “borrower profiles”. This tells the lender whether they are likely to make you an offer. We show your application to all of the lenders whose profiles you match and take their best offers.
Finally, we compare all of their best offers in an easy to digest way for you. This means that we don’t hide any fees from you and we show you their APR% compared directly to one another.
To get started, Click Here.