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We help UK consumers find low cost, short term loans

An small, short term loan often costs less than a large long term loan. Settling a small loan promptly is strongly suggested in order to maintain the cost reasonably low.

• What is a short term, cheap loan?
• Where do I find a cheapest loan online?
• Is the typical APR relevant to short term cheap loans?
• What are the average interest rates for short term, cheap loans?
• How will my credit rating be affected if I apply for a short term, cheap loan?
  

What is a short term, cheap loan?

A short term, cheap loan is essentially a low cost, discount loan that is provided at a lower interest rate than usual, (payday loans are popular short term loans but far from cheap). Short term, cheap loans are usually unsecured loans that require no collateral. Cheap loans, such as payday loans, are provided for a limited time, usually until the following payday, hence ’short term’. It is important to settle a short term loan on time, otherwise, it could cost more than expected and it won’t be cheap. UK lenders sometimes require borrowers to fax in pay stubs or bank statements, but most online UK lenders ask borrowers to meet only a few minor requirements. Cheap loans are paid out within a few hours of applying - hence the widely used terms ‘instant payday loans’ or ‘fast cash advance loans’.

Most short term, cheap loans range from £200 to £1000. Obviously the sooner the loan is settled, the cheaper the loan will remain. Rolling over debt to the next pay cheque should be avoided in order to maintain the cost low.

Most UK lenders will extend cheap loans to UK consumers that have a steady job, with a regular income. Finding a short term, low cost loan online is the fastest way to obtain a cheap loan these days, however, it is strongly suggested that borrowers read the fine print carefully before committing to the terms offered by any online UK lender.

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Where do I find the cheapest loan online?

A financial crisis can strike at any time, the need to borrow money FAST could push people to rush into accepting any cheap loan offer on the internet. Potential borrowers should make every attempt to find a short term, low interest rate laon that is financially suitable. The cheapest loan offers which sound too good to be true probably are, so when you apply for a short term loan, (cheap, secured or unsecured), carefully study the terms and read the fine print. Failing to understand the ‘fine print’ could result in a high priced short term loan that will exaserbate the financial problem further.

While searching online for a fast cash loan, one might be surprised by the staggering amount of short term cheap loan agents often boast of having the lowest rates online. Be cautious and pay attention to what ‘rates’ they’re referring to because, in many cases, they could be referring to typical ‘APR’ rates. Learn more about APR rates and short term loans below.

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Is the typical APR relevant to a short term cheap loan?

Firstly, let’s clearly define what ‘Typical APR’ means to consumers.

The law requires all lenders to quote potential borrowers the typical Annual Percentage Rate (APR) in their advertising and terms. The lender will often offer an advertised APR to at least 66% of potential borrowers, which means they can call it their ‘typical’ rate. Usually the fine print will include terms like “APR subject to change” or “APR subject to status”. The fine print basically states that the lender may conclude that a borrower does not qualify for the typical APR due to any given financial circumstance. A consumers financial circumstances are defined by income, the amount which the borrower can actually afford to repay, job security, credit rating and sometimes even marital status will affect the outcome of the actual APR of a short term loan.

People that apply for a short term, cheap loan, might only need that fast cash until payday, therefore, measuring a short term loan by an ANNUAL percentage rate (APR) does not necessarily apply to short term, cheap loans like payday loans. In fact, an APR is a completely non-proportionate standard for expressing the ’short term’ fees charged by payday lenders. Put in simpler terms: if a person wants to know the cost of a two week cheap loan, the lender is required by law to quote the potential borrower the cost if he/she were to borrow that same amount for an entire year. Is the typical APR relevant to a short term, payday, cheap loan? No.

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What are the average interest rates for a short term, cheap loan?

Interest rates of short term, cheap loans are not as low as traditional loans but the APR is not a good measure for the actual interest charged. Even the cheapest UK lenders advertise a hefty ‘APR’ interest for a payday advance loan of a couple of hundred quid, but it’s not accurate. Nevertheless, interest rates on some payday loans are relatively high because the loans are meant to tide you over for a short while only, particularly when you need emergency cash. When taking out a cheap loan, borrowers should aim on settling the debt promptly in order to keep the cost reasonably low. Remember: If you want a cheap loan to stay cheap, pay it back on time.

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Will my credit be affected when I apply for a short term, cheap loan?

When you apply for a short term loan, most cheap UK lenders will not run a credit check. Whether or not it will affect ones credit rating in the long term dependes. If the loan is settled on time, it could affect credit rating in a positive way, providing there was a credit check in the first place. What’s important to many short term UK lenders is that applicants have a stable job, a bank account and are over 18. Some cheap loan UK lenders require proof of identity, bank statements, a utility bill and other financial documents.

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This entry was posted on Monday, October 6th, 2008 at 1:36 pm and is filed under Find loans, Short-term loans, UK loans.