A financial emergency can hit anyone when there are no savings and you are struggling with poor credit. At such a point, payday loans can seem to be an attractive option. However, the convenience with which borrowers can obtain funds to pass over until their next paycheck often affects them financially. This is why short-term loans are considered to be a better alternative to payday loans.
Getting a short-term loan is as simple to get like payday loans. You can apply online whenever you need a loan for covering a short-term financial emergency. The loan is approved even if you have a bad credit history.
Applicants can borrow cash in advance which can be paid back over 3 to 6 months. Some lenders also offer 12 months to repay the loan amount. This allows you to choose a repayment plan that would suit your current financial condition.
Best short-term direct lender
LoanPig is a direct lender and a loan broker that gives access to one of the largest panels of lenders in the UK so that you find the best short-term loan available. They use innovative technology so that their application process is easy, convenient, and very fast allowing their customers to securely apply for a short-term loan. They welcome all credit histories as they aim at offering borrowers a fair chance to have a loan as soon as possible and whenever they require it the most. Visit www.loanpig.co.uk and apply for a short-term loan with LoanPig to get through your financial emergency.
How is a short-term loan better than a payday loan?
Payday loans and short-term loans share a lot of similarities. Both cash loans are unsecured and can help you get by until your following payday. Both of these direct lender loan programmes are better used for unavoidable expenses.
Payday loans and short-term loans have the same loan amounts which range between £100 and £1500. Payday loans in the UK have interest rates that are not greater than those for short-term loans. Despite the high-interest rates charged by payday loan direct lenders and short-term loan providers, you can repay the loan early which could lower the interest payment. However, this is where payday loans and short-term loans vary in the UK.
The time in which payday loans and short-term are to be repaid is different. Payday loans in the UK must be fully repaid, including any interest, fees, and other penalties, on your following payday which means you can keep the interest amount to a minimum. This is not always possible.
This makes the short-term loan a good alternative as direct lenders allow you to spread out the cost over several instalments which seems great as it gives more time to repay. However, some lenders also encourage paying back early so that the overall interest amount is reduced.
Short-term loans work as a better option compared to payday loans since they are easier to manage. You get a longer period to pay back under equal monthly instalments. Research well and choose a reliable direct lender that offers competitive APR rates with fair and reasonable repayment terms.