What is a Short-term Loan?
A short-term loan is a small personal loan that is
available for a borrower without any collateral or guarantor and has to be repaid within a year. These loans
are also known as High-cost Short-term Credit as the rates of interest of these credit products are quite
high. The reason for a high rate of interest is the associated risk that a lender has to take while
approving a loan.
These loans can be repaid in easy monthly instalments, which means you have the flexibility to choose your
own repayment tenure according to your
monthly budget. A personal loan can be used during emergencies to fix the issue. However, these are
not befitting solution to any long-term financial issue that may take more than a year.
Short-term Loans for Bad Credit Online
At Oyster Loan, we and our lenders understand that a credit score may be a result of many factors.
Therefore, while making a decision, our lenders take into consideration all the parameters rather than
relying on your history only.
After the submission of your application form online for a bad credit short-term loan, the
lenders run a soft credit check on
your report to offer you probable rates of interest according to your needs. It is mandatory to run an
affordability check to assess the borrower’s current and past financial behaviour as per the FCA.
Also, if you make timely repayments of a short-term loan, your credit score will improve gradually. Because
once the repayment of the complete loan is completed, the lender will send a report to the Credit Reference
Agencies, and the agencies will update your record accordingly.
Advantages of Short-term Loans in the UK
- Hassle-free Approval
For borrowers who need fast access to money, this loan may serve as an appropriate option. Depending on
the lender, the request for the application is processed within a few minutes. Therefore, many people
consider it during emergencies.
- Predictable
The monthly repayment amount will remain fixed throughout the loan tenure and hence, a borrower has the
benefit of managing their finances smoothly.
- No Collateral
A borrower doesn’t have to worry about any collateral damage as this loan
doesn’t need any collateral to be pledged while availing it.
- Credit Score
If you have availed a short-term loan with bad credit in the UK, then stick to the
repayment strategy. If you completely pay off your loan within the agreed date, your credit score may
improve.
- Flexibility
A borrower has the flexibility to choose their own loan amount, loan tenure. This helps them to create a
monthly budget according to their income and expenses. they can easily spread the cost of the repayment
over 12
months.
- Less Interest
A long-term loan is taken for a longer duration of time and hence, a borrower has to pay
a higher rate of interest, cumulatively. However, with a short-term loan, the duration is much shorter and
hence, a borrower pays less in interest.
- Reduces Stress
Because it is availed for a maximum period of a year, a borrower doesn’t have to go through a lot of
financial stress. We know that debt has to be repaid. So, the lesser time you deal with the repayment,
lessen the stress you will be in.
How to Apply for a Short-term Loan Online
The lenders registered by the Financial Conduct Authority (FCA), who is associated with Oyster Loan, offer
short-term loans with no guarantor for the convenience of the borrowers. It just takes 3
easy steps to apply for a personal loan with us.
1. Fill out a straightforward application:
Our application form has been designed considering the usability factors. Hence, you may apply for a loan
online using your laptop or even your mobile device. You have to fill in a few basic and important
information about you in the form, which must be true.
2. Compare quotes:
All the information provided by you will be verified and also the lenders will run an affordability check on
your profile to assess loan eligibility. Their decision will be displayed on the screen for you to know and
choose.
3. Get the loan in your bank account:
Once the lender approves of your loan application, the loan amount will be disbursed to your bank account
within minutes by the lender. However, the disbursal time also depends on the lender and your bank.
It is important to go through the Terms & Conditions of the lender thoroughly to know what you’re
getting into. Always raise a flag if you are not satisfied with any of the points mentioned in the
agreement. Discuss with your lender and sort the issues in an amicable manner to avoid any further
inconvenience.
Apply Online for a Short-term Loan – With Oyster Loan
Oyster Loan is an FCA registered loan broker operating across the major cities of the United Kingdom. We
deal with various kinds of personal loans
including short-term loans for poor
credit. All the lenders in our panel are also authorised by the financial regulator – The Financial
Conduct Authority (FCA).
We believe in complete transparency and thus, we do not charge any upfront fees to our borrowers because we
promote responsible lending. However, we also care for our customers, hence, we request them to repay the
loan on time to avoid any damage to their credit score.
To apply for short term loans at Oyster Loan in the UK, click
here.