Are Short Term Loans Right for me?

There are many different types of loans and it can be difficult at times to know whether certain types are right for you. You may not even know very much about certain types of loan and this could mean that you dismiss them even if you have not done much research on them. Therefore, it is good to find out more about loans such as short-term loans so that you can decide whether they will be the right loan for you.

What are short-term loans

A short-term loan is a loan where you only borrow a small amount of money for a short period of time. They tend to be available to most people even if they have a poor credit record. They also can be arranged very quickly and you may even be able to get the money that you need within a few hours. The also tend to be very easy to apply for and can often be arranged over the telephone or online. You do tend to need to repay quickly and so you will need to be aware of this as well. This can be good for those who do not like the idea of borrowing money for a long period if time and hate being in debt. There are some types where you need to repay in a lump sum but also some you can repay in instalments, which means that if you feel that you cannot repay a lump sum then there will be the option of more manageable repayments. They tend to be offered by lenders which are not mainstream so people may not have heard of them or used them before.

Who are they for?

Short-term loans such as those offered by Happy Penguin UK Loans came about because it was seen that those with poor credit records has no way to get money if they needed it in an emergency. Therefore, short-term loans were set up where small amounts of money were lent to anyone who needed a loan regardless of their credit rating. They were also designed to get people money quickly, so that if they are in an emergency situation, they will be able to get the money that they need.

It could therefore be concluded that these loans are just for people that have a poor credit rating and need money in a hurry. However, there is no actual stipulation as to who they are for. This means that even if you do have a good credit rating and are not in an emergency situation, you could still take out a loan like this. Of course, it is always sensible to compare all of the loan options that are available to you and think about which is going to suit you the best and match your needs. However, if you do have a poor credit rating then you might have very few borrowing options. Also, if you need money quickly, even if you have a good credit record, you might find that it will be the fastest way to get money.

Are they right for me?

Whether they are right for you will depend on what you are looking for. They do only offer smaller amounts of money and this could mean that you will not be able to get the amount that you needed. However, if you only want a small amount of money it could be ideal for you. You should also think about the repayment and whether that suits you. All loans differ in how they have to be repaid but they all will need to be repaid at some point. Short-term loans particularly suit those who do not like to be in debt for long and therefore having to repay quickly is something that could suit them. However, you do need to make sure that you are confident that you will be able to manage the repayment. It is good to find out exactly what you will be expected to repay and when and this will allow you to work out whether you will be able to afford it. It is wise to also make sure that you do check you bank statements and do not just assume that you will be okay to pay it. Remember that you will have other things that you will have to buy as well, so you need to make sure that you will have enough money to cover the costs of those things as well.

It is therefore worth looking at all of your loan options, comparing the cost, value for money and repayment terms as well as whether they offer you what you need. It is good to have a clear idea of what you are looking for as well, then you will be able to ensure that you match the loan to your requirements. By spending the time to do this you will be able to have the best possible borrowing experience.

Where Can I Find the Best Payday Loans?

 There are many payday loans available these days. While it is good to have a lot of competition in the market, so that process is more competitive, it does mean that it can be really hard to decide which one might be the best to choose. There are different criteria that you can use to judge as well. These can be different for different people but it is worth having a look to help you to think about what might be important to you in a loan and a lender.

Interest rate

Many people will compare the interest rates of the different lenders and use that as a way to compare them. If you feel that the cost of the loan is the most important factor then you may decide that you will just go with the one with the lowest interest rate and think that you will then have the cheapest. Although interest rate can be a big factor in the cost of a loan it is worth understanding how the interest rate works. With payday loans interest rates can potentially be the APR or the AER. The difference is quite significant. The APR is the Annual Percentage Rate and is how much interest is charged on the loan. The AER is the Annual Equivalent Rate and that is not just the interest but also allows for any fees that are also charged. This means that if the lender charges interest and an administration fee then both are included in AER but not in APR. This means that if you compare two lenders interest rates but one is APR and the other is AER you may pick which you think is the cheapest but actually it is not as the rate does not allow for other fees.


This means that if cost is important to you then you will be better off calculating the actual cost in monetary terms of the loan. This sounds complex but it does not have to be. Most payday loan websites will have a calculator where you can enter the amount that you wish to borrow and how long you need it for and it will tell you how much you will need to repay. If you make this calculation on different sites it will allow you to compare them and to work out which will be the cheapest for you. If you cannot find a calculator or find that it is not easy to use then you can contact the customer services department and they will be able to let you know.

It is also worth being aware that if you do not repay on time you will be charged extra money. This happens with all loans and it is important to make sure that you are aware of how much those charges will be. These could vary quite considerably so it is worth finding out. You might find it tricky to see ow much these are as they tend to be in the terms and conditions of the loan which can be long and difficult to understand for even the most legal minded person. This means that it might be the case that you will need to ask customer services about this. Even if you feel confident that you will be able to repay the loan, it is wise to make sure that you are aware of these costs. It can even help to motivate you to make sure you do repay on time but also allows you to more easily choose a lender.


It is also very important to understand how the repayments work. Many payday loans will have just a lump sum repayment. You need to work out whether this is something that you will be able to afford. For some people repaying a lump sum and interest will be easier than for others. You will repay on the day that you are paid, which will help, but you may also need to think about whether you will manage to pay all of your other bills and costs as well. It is wise to do some calculations and work out how much money you have coming in and how much you need to pay out to se whether you will have enough. If you do not then you will need to think about ways that you can manage your money better so that you can manage. Fixing a tight budget can help, but also comparing prices to make sure that you are not paying more than necessary for things. You can also cut down what you buy if you do not only buy essentials. You may also be able to think of ways to raise money by earning a bit extra of selling things that you own already.