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 is a short-term lender that targets helping users enjoy faster access to credit of between £100 and £1000. They have an APR of 947% and fixed interest rate of 259.33%. Therefore, if you borrow £400 to repay for a period of 6 months, you will be needed to repay £125 every month. The total repayable amount will be £750 and the cost of credit will be £350.
This is one of the leading short-term lenders in the UK. They are known for helping users check their eligibility tests promptly and releasing the approved loans in record time. They have a very low APR of between 11.8% and 49.9%. However, you need to note that these low-interest rates apply to people with average to excellent credit rating. If you borrow £1,200 for a period of 18 months, at an interest rate of 49.9% pa and 49.9% APR, the amount to be paid per month will be £90.46. The total amount repayable by the end of the repayment will be £1628.28.
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 231.4% 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.
Wonga has one of the highest representative APR interest rates of 1311%. This means that if you borrow £400 for a period of 3 months at a fixed interest rate 292% per annum, the total amount repayable would be £604.03. The cost of the credit would be £204.03.
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 and 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 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 £200 for a period of 6 months, the fixed interest rate is 292% per annum and the representative APR 1291%. The total amount repayable will be £381.89. The cost of the credit, in this case, is £181.89.
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, the total amount repayable will be £392.85. The cost of credit, in this case, is £92.85.
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?
We're an introducer to Monevo and not a lender. Rates between 9% APR and 1294% APR - your no obligation quote and APR will be based on your personal circumstances. Monevo compares short term loans from over 50 lenders to get you the best APR possible for you. Loan term lengths from 3 to 18 months.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk