Will Short Term Loans be Right for me?

Before you take out any type of loan it I always a good idea to ask yourself whether they will …

Before you take out any type of loan it I always a good idea to ask yourself whether they will be right for you. It is no good making this decision in a final way though. This is because our financial situation will change over time and we will have different needs. Therefore, even if something is not right for us at the present time, it may work for us in the future or may have worked for us in the past. Therefore, it is a good idea to have a good understanding of what loans are available and how they work and then we will be able to make a decision as to whether they suit us at certain points in time.

What are Short Term Loans?

With a short term loan you will usually be offered the opportunity to borrow a small amount of money. This tends to be between £100 and £1,000 which means that it is a good loan to use if you need a small amount of money. There are some lenders which will only lend higher amounts and this can mean that you end up borrowing more than you need which means that you have more to repay and this can make it trickier to cover all of the repayments. Therefore, having a smaller loan can be easier in a lot of ways.

The lenders will also not insist that their borrowers have a good credit rating. They do not look at the credit rating of their borrowers which means that whether you have a good or bad one it means that it will not matter whether you are accepted for the loan or not. This can be handy as if you have a poor credit rating, it is unlikely that you will be accepted for other loans.

Short term loans are very quick to arrange.

The loans are also quick to arrange. You could find that some lenders will be able to organise the loan within a few hours. This means that if you need money in an emergency they can be extremely useful. You may even find that some lenders will be able to send money outside of normal banking hours which could be really helpful too.

The loans do not last very long at all. You will find that with many short term loans, you will only borrow the money for a few weeks or even days. This is because they are repaid on your next pay day. Therefore, if you are very close to that day, it will not take long until you are free of the loan again. You will normally have to repay everything you borrowed and the interest and fees all in one go on that day. However, you may find that some are instalment loans and this means that you are able to repay over a series of months. This can be more expensive but it is easier to manage so is worth considering.

When Are They Useful?

Therefore, if you have a poor credit record then this sort of loan could be handy. It is likely that you will not be able to borrow using a traditional loan and therefore your options will be much more limited. This means that in this circumstance you may need to look at the short term loans as a borrowing solution. If you only need to borrow a small amount of money, then this sort of loan could be better for you as well. If you need money quickly, then this could be a useful solution for you as well.  Lastly, if you want a loan that will not last very long then these could be good as well.

Should I be a Guarantor for a Guarantor Loan?

It is a good idea to think hard if you have been asked to be a guarantor for a guarantor …

It is a good idea to think hard if you have been asked to be a guarantor for a guarantor loan. There are advantages and disadvantages to doing it and it is worth considering them. A few examples of the sorts of things that you should be considering are below.

Advantages

  • It can be really nice to be able to help someone out. To know that you are helping someone borrow money so that they can buy something can be a great feeling. You might feel bad that you cannot give them the money that they need and so using a loan will be a way to help them out which will be an alternative.
  • If you can afford to give them the money, being a guarantor can help them to learn a bit more responsibility as they will have to repay it. If you give it to them, they will never learn that have to be responsible and return money that has been given to them. Hopefully they will start to learn how to budget and how to ensure they cover repayments which should halo them to get more responsible with their money and this could stop them having so much need to borrow in the future.
  • Try to establish beforehand that if they do miss a repayment that they have to repay you still at some point. This will help them to learn how to more responsible and realise that when they borrow money it needs to be repad.

Disadvantages

  • It is important to make sure that you always have enough money available toc over the loan repayments just in case you need to make them. It can be wise to assume that you will have to pay every repayment and be prepared for that. Hopefully you will not have to pay this many, but if you are prepared for this, then you will not need to get stressed if you do need to hand some money over.
  • If you need the money then you may find that you struggle to manage if you have to keep paying it out for this loan. This could put you into a difficult situation, especially if you suddenly need the money and the person you are guarantor for is not managing to make their repayments.
  • Helping one person out could mean that you are in the position where you will not be able to help out anyone else. This means that if you get asked to help, then you may have to refuse your help.

It is therefore a good idea to have a good think about whether being a guarantor will work out for you. The advantage of being able to help someone can be really good and if it is someone that you really care about that you want to help, you might be tempted to do it and not think about the consequences. However, it is really important that you think about whether you feel you will be able to manage if you are helping someone out and you have to make a lot of repayments as you could end up not having a lot of money for yourself. You also need to think about how others might feel if they ask you to help them and they then find that you cannot help because you need to keep money by just in case you have to make those loan repayments. So, give it all some careful thought and make sure that you are making a decision that will work for you as well as for the person that you are helping out.

Who are Guarantor Loans For?

If you are looking at different loan types, you may have come across guarantor loans or you may have seen …

If you are looking at different loan types, you may have come across guarantor loans or you may have seen them advertised. You might wonder about them and try to think about who they are for. It is good to have a better understanding of them and then you will know whether they will be suitable for you.

How do the Loans Work?

A guarantor loan is a loan where the borrower has a poor credit record and so cannot get a loan on their own for a significant sum of money. They will be able to borrow usually between £1,000 and £10,000, but as this is such a large amount of money, the lender will want them to nominate a guarantor. The guarantor will need to have a good credit record and will agree to cover the cost of any repayments that the borrower fails to make. Normally these repayments will be monthly and how much they are and how many there are will depend on how much money is borrowed.

Who are They For?

The guarantor loans have been designed to help out those that have a poor credit record but need to borrow a significant sum of money. It used to be the case that if you had a poor credit record you would not be able to borrow any money at all as lenders would look at your credit report and reject you. However, payday loans came along and were deigned to specifically help out those with a poor credit record to borrow money. The borrowing amount was only between £100 and £1,000 though and so it was not enough for some borrowing needs. Then guarantor loans were developed which allowed borrowers to have access to £1,000 to £10,000. This is a much more significant amount of money and can potentially be much more helpful. However, lenders were taking a big risk lending this much money to people that had a poor credit report. Therefore, they put an additional protection for themselves in the guarantor loan, where they make sure that the lender has a nominated guarantor who will have to cover the repayment if the borrower does not manage to pay it. This means that the borrower has to know someone who has a good credit report and that has enough money to be able to cover the repayments as well. They will also need to be prepared to make these repayments if they need to. It will mean that the borrower will need to have a conversation with the guarantor to explain what they want and ask them for help, which can be tricky. They will also need to discuss what might happen if they cannot repay the loan and what the guarantor will be expected to do. Then they should discuss what they will do with regards to repaying the guarantor.

So, a guarantor loan is for someone with a poor credit record that needs to borrow a significant amount of money and knows someone that can be a guarantor for them. Like all loans they need to be used with caution. It is always a good idea to make sure that your borrowing is necessary and worthwhile and so you can make sure that you are confident you will be making the right decision when taking on a loan. You should also make sure that you are using the best type of loan for you. By having a good understanding of what your needs are and what different lenders are able to offer, you should be able to match that up and find the most suitable loan. Then when you have picked the right type of loan you can compare the lenders who are offering it so that you can find the one that is best suited to you.

Is it Quicker to Use No Credit Check Loans?

If you are looking for a loan in a hurry then you may wonder whether no credit check loans will …

If you are looking for a loan in a hurry then you may wonder whether no credit check loans will be quicker. It is possible that they might be quicker but it will depend on the one that you choose and what you are comparing it to.

  • If you Have Savings – if you have some savings then it is very possible that using these will be the fastest way to get money. Often, we keep our savings in an instant access account and that means that we are able to get hold of them as soon as we need them. However, this can depend on where we have our money. There are some accounts where we have to give notice on withdrawals and this means that we will have to wait for the money and this might not be soon enough for when we need it. For others we may be able to get money quickly but we may lose a bonus or interest and this might be something that we are not willing to do.
  • If you Have an Overdraft– and overdraft is often given to someone alongside their current account. These are expensive and normally start charging interest right away at 35-40% APR. Not all current accounts will have them and this means that you might not have this option at all. You may have already used it all up. However, if you do have one, then it will be a really quick and easy way to get money as you can draw out the case, do a transfer or write a cheque.
Credit cards are a great way to access fast cash.
  • If you Have a Credit Card– if you have a credit card then this could be a quick option for you. If you are able to buy what you need with a card then you will be able to have it right away. However, if you need cash, then you will have to draw it out with the card and so you might need to go and find a cash machine to be able to do this. When you take money out on a credit card as cash you will have to start paying interest on it right away, unlike other purchases when you have an interest free period between when you buy the item and get the statement so make sure you check how much this interest will be and consider the cost of doing this.
  • Borrow from Someone you Know – if you decide to borrow form someone that you know then this could be a fast way to get money. It may not necessarily be free as they may decide to charge you interest, but if they have the money available then it could mean that you will get it quickly. Of course, you may not necessarily know someone that has that sort of money available to them or you may know someone but may not feel that you want to ask them. It can be tricky at times to ask people for money and so it can be a good idea to think about whether this is a good option for you or not.
  • Compared with Other Loans – it is also worth comparing the speed of organising a no credit check loan with other loans. If you are looking at traditional loans, they will have to be arranged within banking hours and they could take a period of time to organise. With a no credit check loan, some lenders will be available 24/7 to be able to process the loans for you and they might be able to get you the money you need within a few hours. Although this is not as fast as the above options, if you do not have those options available to you or you would rather pick a different option, then this type of loan could be another quick option for you.

Should I use a Payday Loans to Pay my Rent?

There are lots of different reasons that we might want to borrow some money. If you are looking for money …

There are lots of different reasons that we might want to borrow some money. If you are looking for money to pay your rent, for example, you might consider all sorts of different types of loans. This can be a handy thing to do as you need to make sure that you are picking the one that is the most suitable, both for the purpose that you want the money for but also for you and the situation that you are in. If you are considering a payday loan, there are some things that you need to be aware of.

  • How much you can borrow – it is good to start by checking how much you will able to borrow. You will find that you have an option of normally borrowing between £100 to £1000 with a typical payday loan. However, this will vary between lenders. You may also find that you will not be able to borrow this much money if you are a first time borrower. This is because some lenders will want to make sure that you are capable of repaying a small amount before they are happy to lend you more. As they will lend to you even if you do not have a good borrowing history this is a risk for them and they may only want to take on a small risk to start with. This will vary between lenders though and so you will need to compare them and check whether you will be able to borrow the money that you need.
  • The repayment – it is also extremely wise to take a look to see how you will need to repay. Normally with a payday loan you will need to repay everything you have borrowed plus the interest and fees or charges in one lump sum. It is a really good idea to find out exactly how much this sum will be. Working it out can be tricky, especially trying to calculate the interest and finding out what fees there might be as well. However, you will find that many lenders will have a calculator on their website whether you will be able to find that out. You will also be able to ask the lender to work it out for you so that you can decide whether this is an amount that you can afford before you take out the loan. Make sure that you check carefully and think about any money that you will need to spend in the near future and calculate whether you will have enough money to repay the loan and cover the cost of all of the other things that you need to buy. If you will not manage it then consider whether you can spend less money in some areas and earn more so that you can have what you need available to repay.
  • Your alternatives – it is wise to also think about what alternatives you have before you take out the loan. Firstly, think about whether you have any savings that you can use. Also consider whether there are nay ways that you can earn extra money to cover the cost. Then look at alternative loans. Lastly, compare lenders so that you make sure that you are getting the loan which gives you the best value for money. It will take time to do all of this research but it will be well worth it because you will have much better solution for paying your rent and you will be confident that you made the right decision for you and will know that you will be able to cope in that situation.