Comparison of Short-Term Loan Companies in the UK

Posted on 31st of May 2019

When you find yourself in a situation that requires urgent cash, one of the ways to get some urgent cash is going for a short-term loan. Unlike the standard loans provided by banks, that are paid in several years, short-term loans are payable in a couple of months. However, there are some lenders who allow the short term loans well past the 12 months. If you take a loan repayable in less than 3 months, it is called a payday loan. Many people go for short-term loans to cater for car repairs, repair damaged air conditioning system or medical emergency. No matter your reason for seeking a short-term loan, one characteristic is that they have very high-interest rates. Therefore, you need to pick the lender with a lot of care. To help you get the best from short-term loans, we have selected and compared top lenders’ APRs, loan periods, cost of credit and monthly repayments. Take a closer look.

Peachy

Peachy is a short-term lender that targets helping users enjoy faster access to credit of between £100 and £1000. They have an APR of 720% and fixed interest rate of 229.95%. Therefore, if you borrow £400 to repay for a period of 6 months, you will be needed to repay £117.83 every month. The total repayable amount will be £707.01 and the cost of credit will be £307.01.

Savvy

Savvy is a short-term lender in the UK for people looking to borrow between £200 and £3000 in a period of 6 to 24 months. They make the decision whether you are eligible very fast. If you borrow £1,250 for a period of 15 months, the representative APR is 234.8% and the fixed interest of 122.96% per annum. In such a case, the monthly repayment for the 15 months will be £166.66 and the total repayable amount will be £2,499.90. The cost of credit, in this case, will be £1,249.90.

118118 Money

The lender provides loans of between £1,000 to £5,000 for 12, 18 and even longer periods of 24 months with an APR range of 35.9%-99.9% depending on the borrower’s credit rating. If you borrow £1,800 for a period of 24 months at an interest rate of 71.3% pa fixed and representative 99.9% APR, the monthly repayment will be £142.65. The total amount payable will be £3,423.67. Note that the lender has a mobile app to help remind you about repayment schedules and get updates from the company.

Sunny

Sunny is one of the top rates UK short-term loan companies for people looking forward to borrowing between £100 and £2500. For example, if you borrow £100 for a period of 6 months, the fixed interest rate is 292% per annum and the representative APR 1281%, the monthly repayment will be £31.91. The total amount repayable will be £191.48. The cost of the credit, in this case, is £91.48.

Quidie

Quidie is another short-term lender with medium APR. The lender charges 180% interest rate per annum and a representative APR of 447.50%. This means that if you borrow £300 for a period of 3 months, each monthly instalment is £130.95, the total amount repayable will be £392.85. The cost of credit, in this case, is £92.85.

The final take

Selecting the short term loan and bad credit loans need not be a challenge anymore. Reach us today to check the loan options that suit you more. Note that short-term loans are very expensive and you should only go for them after exhausting all the other options. For example, have you considered asking the family for help, borrowing from a credit union, asking an overdraft, or getting an advance?