If you want to borrow money for a couple of months a short term loan could offer the flexible lending you need, but shop around to find the best deal as they can be very expensive.
How to get the cheapest short term loan
Use our comparison to find the right loan for your needs and follow these three steps:
Decide how much you need to borrow: Most short term lenders offer loans between £50 and £1,000, but the more you borrow the more interest you will have to pay.
Choose the right loan term: You can typically borrow over 2 to 12 months, sometimes longer, but the longer you take to pay back what you owe the more it will cost.
Compare the total cost: Our comparison shows you both the representative APR and an example of how much it costs to borrow £300 over three months.
All the companies in our comparison are FCA regulated and direct lenders, not brokers.
Are there any cheaper options?
Yes, so explore all your options first and treat a short term loan as your last resort.
Some alternatives could be:
Borrowing from friends or family
Short term loans FAQs
What happens if I miss my loan payment?
You may have to pay a fee of up to £15 and a note will be added to your credit record. If you are struggling to pay back a loan read our debt guides.
What is a credit facility loan?
They offer overdraft style borrowing and more flexibility to when you pay back what you have borrowed.
Will a short term loan damage my credit record?
It might, but it will not show on your report until your application is approved because all short term lenders run soft search credit checks.
What charges will I pay on a short term loan?
You pay interest until your loan is repaid. Daily interest and charges are capped at 0.8%. You will never pay back more than double what you borrow.
How quickly can I get my loan money?
Once your application is approved the funds could be in your bank account within a few hours. If you apply online over the weekend it may take longer.
Can I get a loan if I have bad credit?
It will be more difficult but some lenders may still consider your application if you have bad credit, here is a guide that can help.
Can I get a loan with a low income?
Possibly if you have a good credit record, but it will be more difficult because you will need to show that you can afford the loan.