The answer to the question “When can I get a short term loan?” isn’t as straightforward as it might be. There are various situations and circumstances that can lead you to require a short-term loan. These situations can be of an urgent nature, but they can also be used to cover other unexpected costs that aren’t necessarily emergencies.
Cash loans like these often have a bad reputation for making debt situations even worse, but the truth is that this only happens to irresponsible borrowers who aren’t realistic about their expectations.
There are various kinds of emergency situations that a short-term cash loan can help you out with. You may have a medical emergency that leaves you requiring private healthcare treatment. This is usually costly. If you want to beat the waiting lists with public healthcare, it’s going to cost a little more to jump the queue and get treated immediately.
On the other hand, your house may be in need of urgent repairs. For instance, if your roof has fallen in, or your boiler has packed up and you can’t afford the repairs before you get paid at work, a short-term loan will definitely help.
How it works
First of all, the lender has to determine if you have a regular source of income and that you will realistically be able to pay off the loan on your next payday. The lender will determine this by asking for your bank statement as well as some kind of proof of regular income, like your last payslip.
Your credit and borrowing history will also be considered. This is not of vital importance to the lender, however. Every application is considered on its own merits and your personal circumstances will be taken into account.
Returning the money
After your application goes through, you will be told when and how to return the money by the lender. This will usually be on your payday, or on the day after you get paid. They will let you know what the fees are for late payment and if there are any additional costs involved. Make sure you carefully read all the terms and conditions.
It’s important that if you don’t think you can repay the loan on the agreed date, you should endeavour to let the lender know as soon as possible, so that arrangements can be made for an extension.