It’s January; a new month and in fact, a new year. And you’re probably facing the stark reality of what Christmas has done to your bank account. Let’s face it, Christmas 2020 ended up being a very different one for us all.
You may feel that there’s no end in sight with the amount of bills coming through the letterbox and to top it off, the boiler has broken down!
So, you may find that you need a little extra help to get 2021 started and take the edge of those overwhelming money worries. Here, Bright Loans look into short term loans, how they work and how they could potentially help you.
Short term loans are intended to see you through the next few months, (or earlier if you’re able to repay the balance, plus interest, and are generally for smaller amounts of cash, normally between £100 and £1,000.
If you decide to take out a short term loan, you will need to agree with the lender that it will charge the payment to your debit card on your next payday. However, some lenders will give you even longer to pay, sometimes up to six months.
These types of loans are often used to help out with emergency costs that couldn’t be covered from your monthly salary or existing savings. For example, your car has unexpectedly broken down or your boiler needs fixing or there is other household maintenance that urgently needs attention.
Short term loans can help you cover the costs of anything that immediately needs to be repaired, so you’ll also need to expect to start repaying the loan shortly after you’re next paid.
This really depends on the circumstances. Taking time to do a short term loan comparison for the sole purpose of covering mortgage, rent or utility bills, isn’t ideally the best solution for most people. In this case, it’s likely that you would need to borrow more and for a longer period of time, and therefore, a short term loan might not be the most suitable option for you. The best thing to do is to seek guidance from an FCA, (Financial Conduct Authority) regulated financial advisor, who will be able to show you the available options that you may have and advise on the best course of action.
If you have sought advice and have decided that a short term loan is a suitable option for you, there are a couple of things to consider when setting out to perform a short term loans comparison.
• The real price – Charges can vary a lot from one company to another. On average, it’s approximately £24 per month per £100 borrowed, so it always depends on the precise amount and how long you are borrowing for. It’s best to always ensure that you know precisely what you are repaying, when and the risks involved if you couldn’t – just in case.
• Ensure you understand the application criteria – this can vary from lender to lender, you will need to be 18 or over, have a full bank account with a debit card, a regular income, (so you can pay the loan back) and you will also be required to pass a credit check. Proof of ID and income is also essential to your application.
With all this information to hand, you may be feeling a little overwhelmed as to how you go about doing a short term loans comparison or where you can find the best loan. Here at Bright Loans, we can help you to find the best deal.
Using our short term loans comparison tool, you can find quotes from hundreds of companies and assess which loan is the right loan for you. All you need to do is follow three simple steps to get you started.
1. Enter your details – quickly pop in a few details about yourself and your situation.
2. Compare quotes – with our smart short term loans comparison technology, we do all the hard work and present to you the best options that are available.
3. Apply and save – after reviewing the prices and applying, leave it to us to do all the paperwork.
It’s always best to seek financial advice from a FCA regulated advisor before you make a significant decision when it comes to your finances. A regulated advisor will be able to see the most suitable options that are available to help your situation and present them to you. Once you have done that and ensured that a short term loan is right for you, Bright Loans is on hand to guide you through the process.
It’s as simple as 1,2,3. And when you compare short term loans with our technology, you will be safe with the knowledge that it is fully protected, ensuring that your data is secure.
Here at Bright Loans, we are completely independent and impartial, meaning we can get the right price for you from a wide range of deals out there. We make sure you never miss any saving opportunities with our alert service, and of course, never pass your data onto any other company, ensuring complete safety. We also know that managing your finances can be tricky and that’s why we are here to help and are dedicated to make the process as simple as possible.
With all that in mind, Bright Loans is ready and waiting for you to discover the right deal. For more information and to compare short term loans, simply follow the steps here on our site.
Or if you need answers to any further questions you may have, or more information about the products featured on our website, please don’t hesitate to get in touch with our friendly team.