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by Contributor

Image:  InspiredImages, Pixabay, License

(Jun. 26, 2020) — Whether you have an urgent home repair that needs to be done ASAP, your car has suddenly broken down and you can’t get to work, or you simply need a quick injection of cash to see you through until payday, a short-term loan is a great option for those that need money sooner rather than later.

That being said, there is a certain amount of stigma around these types of loans, mainly due to an abundance of unscrupulous companies popping up online that hinder rather than help your financial situation.

However, that doesn’t mean that you shouldn’t take advantage of the many benefits of taking out a short-term loan – you just need to make sure that this option is the right choice for you.

So, let’s take a look at the top five benefits of short-term loans, plus how they can actively help to improve your finances today.

1.   Short-term loans are fast

If you need money quickly, a short-term loan is arguably your best bet. This type of loan can be processed extremely quickly, sometimes in as little as a day, so you can sleep safe in the knowledge that you will have the funds you need when you need them.

Furthermore, choosing a direct lender of payday loans such as LoanPig Direct UK Lender guarantees you to get approved and gives you access to your loan faster than with other loan types.

2.   Short-term loans are accessible to everyone

If you have been turned down for credit elsewhere, you will be pleased to know that short-term loans are accessible for nearly everyone, even if you have a poor credit history. Most short-term loan lenders will look at the bigger picture when it comes to lending you money and work out what you can afford right now rather than focus on any mistakes you have made in the past.

3.   Short-term loans can boost your credit score

By acquiring a short-term loan and paying it off in the allocated timeframe, you can improve your credit rating, making other loans and forms of credit more accessible to you in the future.

Remember, it is sometimes better to have bad credit than no credit when it comes to your credit score!

4.   Short-term loans are less stressful

If the thought of having debt hanging around your neck for years fills you with dread, then a short-term loan is the ideal option for you. You choose the amount you need and the repayment timeframe (usually within 12 months or less), and once you have made all of your repayments, you are free to get on with the rest of your life. Or take out another short-term loan if you need to.

5.   Short-term loans are predictable

Taking out a long-term loan when you are unable to predict what your finances will look like in the future can be a daunting prospect.

What would happen if you lost your job or you took on other financial responsibilities that made it difficult for you to afford the repayments?

However, it is a lot easier to predict and budget for a loan that you know will be fully repaid in a matter of months.

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