Short term loans enable individuals to borrow smaller amounts of money, over shorter time frames, to meet financial responsibilities, emergency costs, achieve business or educational objectives, have medical or dental care, or enjoy a holiday break.
Nowadays, there are a range of options in short term loans, such as loans to bridge income gaps, guarantor loans, and short term instalment loans. People use short term loans for home improvements or to purchase digital technology, for example. Various lenders offer different loan criteria, terms, rates and fees. Comparing what lenders or credit firms have to offer may save money in the long run.
Some short term loan providers will customise loan amounts, repayments and terms to suit an individual’s loan goals and financial circumstances. Lenders strive to provide customers with lending options. In some cases, loan repayment duration may be extended and term conditions adjusted. Short term loans may be an option to relieve financial burden and manage credit to prevent escalating debt.
In approving short term lending, credit firms do assess an individual’s credit-worthiness and credit score through credit reference agencies, unless a guarantor is used for loan surety. Improving credit score and rating is a means of securing future loans and gaining favourable loan terms.
Responsible short term lenders abide by industry codes of conduct and support borrowers through their credit experience. While lenders have a responsibility in ensuring short term lending falls within ethical parameters, consumers have a responsibility in researching and applying to approved short term lenders with responsible reputations.