Pros and Cons of Unsecured Short Term Loans for Ba

Created: 2016-10-13 08:00:00

Unsecured short term loans are the only option for people who don’t have a reasonably good credit score and don’t have any collateral or guarantor to offer. Finding such short term loans is easy. Check the propositions of Cash Kitty, compare loans in UK, decide which ones suit your needs and apply for them online. You would hear back from the loan officer and you can respond accordingly. In most cases, all you need to furnish is a filled application form, proof of identification and proof of income along with banking details. Once the application is approved, the loan is disbursed and credited to your bank account.

Now, short term loans can be secured and unsecured. There are differences. Also, there are differences between short term loans for bad credit applicants and those that require a certain credit score. Let us explore the pros and cons of unsecured short term loans for bad credit applicants.

Pros of Unsecured Short Term Loans for Bad Credit Applicants

There are many advantages. There is no credit check involved hence people with poor credit history or a not so desirable credit rating can apply for a personal loan and get approved. No collateral or guarantor is required which also works for most people who don’t have someone co-signing the loan or offering the security. Such short term loans can be approved in a few hours which also address the immediate needs of people. Since the amount can be as small as a hundred pounds, people can often meet emergency expenses or a temporary financial crisis.

Cons of Unsecured Short Term Loans for Bad Credit Applicants

There is only one disadvantage of these short term loans and that is the rate of interest. The rates are typically higher than those of traditional personal loans or conventional short term loans from banks.

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