Information on Overcoming a Financial Crisis With Short Term Loans

When a financial crisis occurs, many individuals begin to panic and make poor financial decisions in an attempt to get themselves out of their crisis. One of the biggest mistakes people make is turning to credit cards to try to fund their needs. With extremely high-interest rates, some credit cards can end up causing a person to further sink into debt, making their financial woes all the more stressful. Several years ago, payday loans came on the scene but these required a person to pay back the full lump sum on their next payday or face serious penalties. Now, the loan market is heading towards better offers with Short term loans.

A loan of this type offers much better terms than typical payday loans of the past. Instead of being required to pay back the borrowed sum of money on the next payday, borrowers may extend their repayment and split the amount up into five more manageable payments. New borrowers can borrow up to £800 with established customers being able to borrow as much as £1500.

To be approved for this loan type, one will need to be a citizen of the United Kingdom and should be eighteen or over. Applicants will need to show proof of their income and their credit score will be checked with the Callcredit Information Group. The lenders take into account the applicant’s current credit score and financial situation to determine whether or not they will be approved for the loan they are seeking.

Before a person enters into a loan agreement, they need to be sure they are well-equipped to repay. This type of loan offers a low 0.7% per day interest rate and late fees are assessed in the amount of £15. It behooves a person to be on time with their payments so they can establish a solid record with the lender and be able to borrow greater amounts in the future.

If you are dealing with a financial crisis or simply need money for a major purchase or a vacation, these loans are much more preferable over payday loans which can cause you to amass huge charges in interest.