Comparing Short Term Loans Flexibility of Terms

Created: 2017-07-14 00:00:00

Comparing Short Term Loans Flexibility of Terms

A short term loan may have a repayment period of six months or shorter, a year or longer. Usually, short term loans don't have repayment terms stretching beyond a year and a half or two years. In some rare cases the term could be three years but it definitely doesn't apply to small loans. When you need a few hundred quid, you are expected to pay back in a few months, a few weeks in some cases and in one month when you go for payday loan with the said repayment term.

It is incumbent upon you to compare short term loans. Not only should you compare the loan specific propositions but also the profile of the lender, how long they have been around and what others have to say about them. There are many parameters based on which you must ascertain if you wish to deal with a particular lender. One of these parameters must be the flexibility of terms.

Flexibility of terms is quite simple to understand. Let us imagine a scenario wherein you need a thousand pounds. The lender may want you to pay it back with interest in six months or twelve months. Some borrowers will be happy with six months while some will want a year. There can be shorter terms as well. What you need to look for is a possible choice that allows you to pick your favorable term. Some lenders will allow you to select the term at the time of applying the loan and then you cannot change the same. Some lenders will not allow you to pick any term and you would have to repay them in the timeframe they set for you.

It is not necessary that a lender will offer you any flexibility of terms but you ought to pick a term that works for you and not one that the lenders deem fit for themselves.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk