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Short-term loans offer the perfect solution for those of us who want to borrow smaller amounts of money and are able to repay it within a relatively short timescale.

These loans are a great option when you are able to manage your finances well, do not have a great deal that you need to borrow or for covering any unexpected costs such as repairs to the family car or an urgent job that needs attention at home. They are also good if you have been turned down by your bank, building society or mainstream lenders and need access to funds urgently for an emergency.

Be aware however that 12-month short term loans and 12-month personal loans are two different products and offer different rates. So make sure to check both products to see which one is right for you.

As with any financial product, they have both their advantages and disadvantages. Read on to discover the pros and cons of 6-month loans and 12-month loans before making a decision on which product to apply for.

6-month loans

Pros Cons
After 6 months, the debt is fully repaid and you can use the money you were dedicating for repayments elsewhere These loans are generally only available for lower amounts.
6-month loans are ideal for covering unexpected costs and are easy to apply for You have to ensure that your monthly budget and amount borrowed are manageable to avoid missed repayments
6-month bad credit loans are an excellent way of rebuilding your credit score if used correctly and paid back on time Interest rates tend to be much higher on 6-month loans

12-month loans

Pros Cons
12-month loans are ideal for slightly larger purchases as you have longer to repay them Taking out a larger amount will be more expensive, so consider a longer term to make payments more manageable
Interest rates are generally lower with 12-month loans than with 6-month loans 12-month loans are great for getting yourself out of a hole financially in the short-term, but you need to be sure that you can manage should another problem arise
Smaller monthly repayments can help you manage your finances better and boost your credit score Your credit score will be harmed if you are unable to or forget to make monthly repayments as agreed when you accepted the loan

There are several lenders offering a wide range of short-term loans, including 6-month loans, 6 month bad credit loans, 12 month loans and 12 month bad credit loans. Each loan will come with its own repayment terms, so it’s important that you choose your lender carefully and select the short-term loan that offers the best terms that suit your current circumstances.

Here are some examples of lenders that specifically offer short-term loans:  

  • Peachy
  • My Jar
  • Pounds to Pocket
  • Mr Lender
  • Lending Stream
  • SafetyNet Credit

Compare Short Term Loans

Interest rates and repayment terms will vary from lender to lender, so it’s essential that you do a little homework before you decide which short-term loan you want to apply for.

In order to find out which short-term loan best suits you, use our short-term loans comparison tool and find out which products are right for your needs before making an application.

To avoid harming your credit score before applying, we recommend using an online eligibility calculator to see which of these short-term loans you’re most likely to be accepted for.

Please note, short-term loans are a serious commitment. Please consider whether you can afford the loan before you apply. If you are struggling financially, a loan may not be the best option for your circumstances. Late or non-payment may negatively affect your credit standing and increase the cost of any future borrowing, or make it very difficult to obtain any credit in the future. You may wish to seek more impartial information or advice from your local Citizens Advice Bureau or the Money Advice Service.