{"id":26625,"date":"2022-06-14T14:16:48","date_gmt":"2022-06-14T13:16:48","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26625"},"modified":"2023-11-15T06:31:26","modified_gmt":"2023-11-15T06:31:26","slug":"are-short-term-loans-good-for-your-credit-rating","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/are-short-term-loans-good-for-your-credit-rating\/","title":{"rendered":"Are Short Term Loans Good for Your Credit Rating?"},"content":{"rendered":"\n

Every adult in the UK has a credit score. It\u2019s a reflection on how well you manage your debts, and it helps lenders decide if they should lend to you. A low credit score tells the lender that the risk of lending to you is high. While a high credit score tells them that the risk of lending to you is low.<\/p>\n\n\n\n

These days, it\u2019s hard for anyone to go through their entire life without taking out a loan<\/a><\/strong> of some sort. Short term loans<\/a><\/strong> are common ones to take out these days.<\/p>\n\n\n\n

Short term loans help us out when faced with unexpected emergencies. They\u2019re meant for when you want to borrow small amounts of money. You can pay them back anywhere between 1 and 6 months<\/a><\/strong>. Short term loans are easy to apply for online through brokers or with a direct lender, and you get the money fast, if approved. Demand for these types of loans is increasing, with some lenders offering them to people even with a bad credit rating.<\/p>\n\n\n\n

Here we\u2019ll look at how short term loans can affect your credit score<\/strong><\/a>.<\/p>\n\n\n\n

\n

Table of Contents<\/p>\n