Short-term loans make sense when your funding needs cannot wait. It is a good thing that you have taken some time to think about short-term loans. They are highly beneficial for short-term needs and other critical requirements such as an emergency. In this post, we will endeavour a little to learn about this product and see if we can increase your chances of borrowing.
What Is a Short-Term Loan?
As its product name suggests, a short-term loan is an unsecured loan that can be taken out quickly and repaid in the same manner. You take out this loan for a ‘shorter term length’. Due to being a loan without collateral needs and helping a borrower with short-term needs, this loan is approved very fast.
Now, let’s talk about the term length. Most of these loan products come in a short-term length. It means you can take the loan out for a shorter period. Therefore, it becomes easy for you to pay it back to your lenders too. Many borrowers prefer repaying loans in the shortest time possible. For them, short-term loans might just be the thing.
How long does it usually last? You can consider a month to a few months or a year as a common term length for a short-term loan. When you are taking them out from private lenders (also known as direct lenders) such as us, you may get some more facilities on the term-length factor.
Are Short-Term Loans and Small Loans the Same?
No. They might seem a little too similar. However, they are not the same at all. Both suit borrowers with different purposes. However, the similarity between them is that both of them are unsecured personal loans and are very fast when considered for approval.
| Short-Term Loan | Small Loan |
| A short-term loan has a short length of the term. You can take out a loan for a high amount yet choose to repay it within 3 months or more. | A small loan does not have a definitive term length. However, you can take out only small amounts for your urgent needs. For this reason, this loan naturally gets repaid fast. |
How to Increase My Chances for Short-Term Loans
It is quite an easy thing to get a short-term loan if only you know how they work. Do not worry, though. We have put together a guide below with step-by-step processes to help you accurately increase your chances of loan approval.
- Take Note on Your Income
You should know that your income statement offers an unsecured loan. Your credit score does not matter significantly here. You can, in fact, manage for yourself short-term loans with no credit check from a direct lender. To get this facility, all you need to do is to be very truthful and evident with your income statements.
- Organise all the details of your income statement.
- If you have extra earnings or you wish to repay your lender with those alternative incomes, then be sure to share details of them too.
- Do not hesitate to repay your lender if you earn benefits.
- Share income details where the income amount is clearly mentioned with your employer’s name.
Your lender might want this information to check your loan application and affordability. As a borrower, you can also find out if you can manage to repay your loan. If the lending institution finds your income to repay the loan instalments quickly, then you can surely get yourself a short-term loan soon.
- Apply for an Amount You Can Afford
As mentioned earlier, personal loans work in a specific way. Lenders are going to take a proper look at your income statement and find out if you can repay the loan in time using your earnings. You can analyse your loan affordability, too, using something called a loan calculator.
- Find a loan calculator online.
- Check your loan offer and find out the repayment packages your lender offers you.
- Every repayment term has a significant rate and instalment-related regulation. Use the rates from each package and put them in the loan calculator to find out how much you need to pay for your instalments.
By doing this, you take a step ahead of your lenders in checking your loan affordability. If you have already found a comfortable rate, then you will know that the chances of approval for your application can get to almost 100%.
- Take a Look at Your Credit Score Update Yourself
Your credit score is not making a significant difference here. You already know that you can get a loan without a credit check. A soft credit check might still be done to prescribe you the best loan products.
However, without offending any institution, credit upgrade errors can occur. To fix this, you can use the following methods:
- Take your credit report and send it to your credit card issuer for a credit score upgrade.
- Find the newly upgraded score and report. Sit down to cross-check all the details yourself.
- If you spot errors, notify that immediately to your credit card organisation. They will surely make rectifications.
- Use a fresh credit score to apply for loans. Even a little change in it can make you get better lending support.
Being a little cautious with credit reports and scores can work really well. It makes you financially more alert. You can use that to gain extra benefits apart from borrowing.
To Conclude
When you are sure that you have checked all the boxes and come to a point regarding your finance, you can become a confident borrower. We, as direct lenders, however, can help you be so. Whether it is no credit check loans or no-guarantor loans, direct lenders are always ready to lend you money as well as a helping hand when you are transparent with your income-related information.
We have been lending to borrowers from all walks of life for a long time. We value your needs. Nevertheless, we also try to give you more consultancy support with the help of private lending. If you need us, simply let us know. We’ll be there with you and for you.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
