You can apply for a short-term loan from your bank (either as a loan for a short amount of time, a credit card or an arranged overdraft), various money shops in the high street, or online via direct lenders like Lending Stream.
Some loans may only be available depending on how quickly you need them, how long you need them for and how your credit rating is. If your credit isn’t good, you may have difficulty getting ‘low interest short-term loans’. While there’s no such thing as a ‘bad credit loan’, there are some loans that are more high cost because they’re more short-term.
Lending Stream offers short-term loans that you repay over six months. If approved, we can usually transfer the money to you within minutes if approved.
We offer six-month loans because we believe that it’s a more realistic timeframe to repay them. It means the amount can be spread out with payments you may find more affordable than trying to repay the entire amount back a month later.
If you want to apply for 6 month loans, you can do so right now. It only takes minutes and you’ll get a fast decision in most cases.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Short-term loans can be used for all kinds of things, but the more expensive the loan, the more likely it is to be an emergency loan. In fact, many short-term lenders are prohibited from advertising that loans can be used for ‘frivolous’ purchases like luxury items or holidays. They’re also not designed for regular usage, as that can become more expensive.
Generally speaking, shorter term loans are for emergencies, because it’s generally a better idea to plan longer-term for luxury or unnecessary purchases.
They’re also sometimes used to help with an unexpected gap in finances, in order to pay the bills during a month where you’ve overspent because of unforeseen circumstances.
There’s no specific time period, but generally when people talk about ‘short-term loans’, they’re for less than a year. They can range from a day or two up to a full year. Anything within those time periods would generally be regarded as ‘short-term’.
This means it’s a term that covers payday loans and monthly instalment loans. Most are usually a month long, or are three month loans, six months loans or a year-long loan. This is because they tie in with most people’s pay frequency and they’re simple time periods for people to understand and plan for.
They’re usually paid back via ‘continuous payment authority’ (CPA). This is like a Direct Debit in some ways, and is set up when you first take out the loan. It gives the lender authority to take payments from your bank card on the due date. This can be cancelled if necessary by contacting the lender or your bank and removing the authority.
Some lenders will also accept payments via their apps or by separate payments made online or over the phone with your debit card. You may even be able to pay by cash with some lenders, if they have a physical store and customer service desk.
It depends on a number of factors – primarily your ability to repay. This is usually determined using information about your monthly income and outgoings, along with information held by credit rating organisations.
If you have bad credit and need a short-term loan, it may be more difficult to get one, but not necessarily impossible. If you can show an ability to repay, and reduce the risk in lending to you, then you may still be able to get a good offer on a short-term loan.
As long as you repay on time and don’t over-use them, no, they’re not. However, if you overuse them or avoid repaying, you could end up paying significantly more interest than may be necessary. If you don’t repay, you could also end up having your non-payment recorded on your credit file as well.
At the end of the day, how you use short term loans is up to you. However, if you use them irresponsibly, you may end up making a situation more expensive than it needs to be. And if you use them regularly, then your overall financial situation could suffer.
Short-term loans are designed for emergency and/or occasional use. If you’re using them too often, then it may be a sign of poor financial planning.