What is short term credit?

Created: 2018-02-21 15:00:00

Almost everyone at some point in life will find themselves in an emergency situation where there is an immediate expense that requires cash that is not readily available. These maybe a car repair, unexpected medical bill, or any other unexpected bill. A Short term credit may be taken to bridge the short term cash-flow gap when such unforeseen circumstances occur in life.

Short term credit also referred to as short term loan is a small amount fund that is borrowed to be repaid within a short period of time usually less than 12 months. These type loans are often easier to obtain than long-term loans.

Reasons why you should consider Short-term credit

  1. Short term loans offer a quick means to financial success. They take less time to process since there is less paper work. There are also lower benchmarks to qualify for a short terms loan.
  2. Some short-term lines of credit may not require any collateral. This means you won't risk losing your property if you are not able to make payments within the stipulated timelines.
  3. Credit Score Boost - if you have a bad credit history you can to take a short term loan with an aim of improving your credit score. This will be achieved by paying off your short-term loan early to improve your credit score quickly.
  4. If you take out a short term loan you will end up paying less interest compared to a long term loan. The longer the loan duration, the more the interest you will be required to pay.

Before selecting a lender, it is advisable to do a thorough research and to compare the loans and interest rates offered by different lenders and settle on the one that best suits your situation. If you are in the UK, applying for a short term loan with Cash Kitty will help a lot. They offer friendly loan terms and great customer service.

How to apply for a short term loan online

A payday loan is a modest, short-term unsecured loan that is provided to be repaid at the next payday. Typically, in order to qualify for a payday loan, most lenders require you to show verification of employment or income through pay stubs and bank statements. The payday loan lender will also need you permit them to access your bank account to recover their money when you receive next pay check.

Most online short-term loan providers like Cash Kitty make the online application process very quick and easy. All you are required to do is to visit their website and fill out a simple online application. Once complete, the loan application is matched with the most appropriate lender in Cash Kitty's database depending on your needs. If your application is approved, you will be transferred to the lender's website where you'll be required to fill your agreement online to complete the process. Your funds will be available in your account within minutes of your application.

Below is a simple guide on how to get a Payday Loan Online:

  1. Find an online short term loan service. There are countless online payday loan services. Cash Kitty is a good example. You can do an internet search or contact a local office by phone for recommendations.
  2. Complete the online application. After choosing the lender you'd like to work with, visit their website and complete an online application. You will be required to provide information on your identity and your employment or income.
  3. Attach important documents. Some lenders may require you to scan or fax in some supporting documents such as identification documents like I.D. or passport and bank statements as evidence of your employment status and income.
  4. Link your bank account. Once your loan has been approved, you will be required to link your bank account. Linking your account allows the lender to directly deposit money into your account. In addition, the lender can access your bank account to recover his money when you receive your pay cheque.
  5. Receive your money by direct deposit. After your bank account is linked and approved, you should receive your funds electronically within minutes of approval, after a few hours or the following business day subject to terms and conditions.

Repayment: The payday loan repayment along with any other fees is then electronically withdrawn from your bank account after the timeline of the loan has expired. You may also choose to roll over the loan for a fee.

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