What’s the best short term loan??

by David Jenyns on October 5, 2011

Save yourself a little time, money and effort use payday lenders

It is a frequent event, something unexpected occurs like your vehicle breaks down or an unexpected bill comes thru the letter box, the requirement often pops up where you may need a little bridging loan so as to see you thru to your next pay cheque.

When it comes to deciding your next move it can sometimes be alarming as to which route you need to take so as to get the money you need. If it is only a small amount of cash you need there aren’t a lot of normal kinds of credit that offer The speed and flexibly you need solely to get you through say a couple of weeks until your next payday.

There’s however one type of credit which is designed particularly for these kind of eventualities and if used correctly can be an absolute god send if you should find yourself in a bad financial position.

The idea of this article is to give you guidance in order for you to get the finest deal you possibly can for your circumstances.

The first thing you wish to establish is if a payday loan is even the right type of finance for you.

There are numerous forms of finance available from credit cards to loans, even borrowing from mates or loved ones this can save you a serious amount in interest compared to payday loans if your looking to borrow even only for 1 or 2 months. Below is a list of varied types of credit, time scales to money received, and approximate APRs to see if these would be a better option. Also see payday lender rates. All estimates are based totally on the individual having a low credit history.

Credit Card

Processing time of a credit card is around 14 days.

APR (29%-65%) these differ widely depending on your credit score.

Benefits flexible, so long as you pay the interest you can roll over the balance for as long as you like.

Downsides 14 day processing time and credit check.

Short Term Loan

Processing time of a short duration loan is up to 7 days.

APR (250% – 450%) differing depending on your credit history. This is set up over minimum 6 months.

Benefits “Fixed payments

Downsides you can not payback early so you will pay more in interest over the longer term, you will also have a collection agent coming to your home every week for payments. Your credit checked and processing time is up to 7 days.

Payday Lender

Processing time “As little as 15 minutes.

APR (1700% – 4000%).

Benefits Virtually instant acceptance so long as you have a weekly earnings, cash in the bank in the hour. No credit investigation or really low credit history authorised. The amount to payback works out around £30 to every £100 borrowed paid in full on your next payday.

Drawbacks If you keep rolling over the balance it can be reasonably expensive you need to payback the balance on your payday.

Payday Lenders are a fantastic source if you’re short of a fast money injection. Using payday lenders not brokers will even save you extra cost on broker’s charges. See short term loans UK for more in-depth information.

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