It is in these situations that borrowing options can be a godsend. From overdrafts to personal loans to credit cards, it helps to know that you can have some money in the bank when you need it most.
However, some credit providers are looked on less favourably than others, short-term lenders being a prime example. But do they deserve all of the bad press they receive? Provided that you borrow sensibly, here are just three of the reasons we see them more as saviours than sinners…
Credit Checks are Minimal
When you find yourself short of cash, your credit record tends not to be at its healthiest. It seems unfair, then, that so many lenders hold this fact against you. Short-term lenders are not amongst them. Most short-term providers understand that unfortunate circumstances have driven you to make an application to them, so they tend not to carry out credit checks. This does mean that the interest they charge is likely to be higher than it is for other borrowing options, but this is only fair considering that you pose a higher risk of defaulting. If you’re in dire straits with nowhere left to turn, this can make short-term loans an ideal solution to your problems.
You Can Access Funds Quickly
As we mentioned above, short-term loan providers often circumvent credit checks. This means that there is far less of an administrative burden for them to bear, and fewer hoops for you to jump through, which speeds up the whole process. Indeed, it’s common practice for lenders like Smart-Pig to have money in your bank within 60 minutes of your application being submitted.
You Can Pay Your Debt Off Quickl
Perhaps the greatest boon of short-term loans lies in their very nature: that they don’t last for long. Few of us relish the thought of being indebted, so it’s nice to have an end date in sight when you borrow money. With short-term options, this will be clearly outlined from the beginning of the arrangement, meaning that you can count down the days until you’re debt-free once more.
If you’re in need of capital, could a short-term loan be the perfect borrowing solution for you?