How to compare short-term loans online
Comparing short-term loans online can be a challenge, but not impossible, as long as you know what to look for.
We’ve put together a short guide on how to compare loans online so you can find the best short-term loans for you. This will make things a lot easier, especially if you’re a bit unsure over what you should be looking for. Read on to find out the best way to compare short-term loans.
What is a short-term loan?
- Small loan for emergencies or unexpected expenses
- Very quick application process
- Receive a lump sum in your account within a few days
- Loan term usually just a few months
- Very high interest rate
- Repayments higher than a standard loan as the term is shorter
A short-term loan is a form of borrowing where you receive a small lump sum and pay it back over a short period. They are usually taken out for the purposes of covering an unexpected expense or for something that needs to be purchased immediately.
The problem with short-term loans is that they come with a very high interest rate. If you stick to the agreed loan term then this shouldn’t be an issue, but if you’re unable to pay or make any late repayments, you can easily spiral into debt.
That is why it’s very important to compare and find the best short-term loan for you, giving you the best chance of repaying it in full within the time given.
How do I compare the loans online?
As mentioned above, there are plenty of options when it comes to short-term loans. This is useful, but it can be difficult to decide between them, especially when you’re trying to find the best short-term loan very quickly.
Use the following tips when you start comparing short-term loans:
- Pick a trustworthy lender – whether you have borrowed from the lender before, or you have had a recommendation from a friend. It’s worth going for a lender who you can trust, to put yourself at ease. Have a look at our provider pages to find out more about each lender
- Check your eligibility – before you apply for any financial product, always check your eligibility to see the likelihood of you being accepted. Try moneymatcher today
- Flexible payment – have a look at the representative example to see what your [possible repayment schedule would look like. This will allow you to plan a flexible payment to fit your budget
- Pick out the best rates – comparing loans can be tricky at first but once you know what you’re looking for and what the layout means it will make things a lot easier. Look out for the following things:
- Provider – look out for which provider is offering the loan deal
- APR – the interest rate might seem high but you can calculate how much your repayments will actually be over the short period
- Credit rating – this will indicate whether you are likely to be accepted
- Representative example – this will give you the best indication of what you would be likely to repay given the loan deal
- Low APR and interest rates – you won’t usually get a low APR with a short-term loan, but you can find a lower APR than others, meaning that you will have less to pay back overall
Start comparing short-term loans
Using the above points, you should be able to look through short-term loans and find one that fits your circumstances and more importantly, is easy for you to pay back.
Start comparing short-term loans by filling out our moneymatcher comparison tool, which should point you in the right direction and tell you how eligible you are for a loan.
Written by Robert Bester - Content Writer
Published on 15th July 2019