Short Term Loans- Are They Good For Your Financial Wellbeing?

In a perfect world we would all have an abundance of cash at our disposal whenever we need it. Unfortunately, this is far from reality for most of us. There may come a time when you will need a helping hand to assist you with a financial crisis that may occur. Money could be needed towards a new stove, car repair or to simply help free up any financial strains at the moment. Whatever the case is, a loan may be your only option.

There are many different loan services in the UK, but for instances where you need to borrow a small loan to help with life’s unexpected expenses, a short-term/small loan can come in handy. Short-term loans are scheduled to be repaid within a year.

When you find yourself in a financial crisis you may get stuck in a cycle of persistent debt. A short-term loan can serve as a great way to ensure your financial wellbeing remains in good standing.

Shorter Repayment Plan

A big advantage to having a short-term / small loan is that you aren’t bound to a repayment plan for a long period of time. Stress free borrowing knowing you can repay within 12 months and get your needed expenses covered in a timely matter. If you are only looking to have an extra £300 to help with your expenses, it may not make sense to borrow anything more than that and put yourself in financial turmoil. However, one thing to keep in mind are interest rates. This can vary depending on the lender and the type of loan you are taking out, so it is important to shop around to ensure you aren’t putting further financial burden on yourself.

Smaller Repayment Balance

Another great advantage to taking a short-term loan is that your repayment balance will not be that large. There is no need to worry about repaying large sums as you know you didn’t borrow more than you needed. Again, it is important that you calculate your interest for the duration of your repayment plan so you understand completely if the loan you are paying is not going to put you in further financial crisis.

Get Your Money Quicker

Applying for a short-term can be relatively easy. All you need is a computer and internet, you don’t even need to leave your bedroom! Apply online, usually filling out your bank, employment and personal details. Then voila! It’s a quick and easy way to get the money you need when you need it most. This is very important if you need help now and you cannot wait for whatever reason.

Are short term loans good for people with bad credit?

When you have bad credit you risk a high chance of being limited to the credit you can receive. This means you have to find ways to build your credit score. A short-term loan is a good way to do that. You have less stress worrying about paying off larger loans and make payments on time that you know you can. In the long run this can improve your credit and allow you to have more options in the future. Although you may be nervous about borrowing, short term loans can definitely serve as a long term benefit.

Creditspring. Membership service for short-term loans.

In the long run short-term loans can be very useful. Not only does it serve as a great way to keep your financial wellbeing intact, but you also won’t stress about getting yourself in a financial bind. This is why Creditspring is a great option for many reasons! With Creditspring you are covered for those unexpected expenses that will occur at least once or twice a year. You can continue to build your financial wellbeing and know exactly where you stand with your financial Stability Score, exclusive to Creditspring members. This allows you to get a rough overview of where you stand financially, while continuing to build your credit. You will have access to two on demand loans a year with no interest (Step Membership Rep APR 88.8%, Core Membership Rep APR 83.1%, Plus Membership Rep APR 66.2%). Know exactly what you’ll owe right away. Understandably, some people may be wary of taking a short term loan because of the expected repayment timing and interest rates, but with Creditspring you know how much you owe upfront before you start borrowing, no hidden fees! This leaves more time to plan, to budget and to enjoy life stress free.

(This blog was last updated on 25th of July 2023 with the latest product pricing)