Short terms loans can sometime be in the form of Bridging finance for larger amounts or Payday loans for smaller amounts. The two types of borrowing are very different. Small value short term loans or payday loans are usually given with very high fees and high rates, and often have a term of a few weeks or a month. The lender will look at your job and make sure he gets his money on your payday. As most people with a good credit history and not a lot of personal debt, will have access to a credit card, they will find it easy to get through “till the end of the month”. People with a lot of bad credit will be forced to get loans from high fees high rates payday lenders or specialist short term loans shops that are far less fussy about credit scoring. Bridging finance is like a short term mortgage that is secured on an asset usually a property. Bridging finance lenders and brokers usually have fees of around 1% and the interest on the loan is around 1 to 1.75% per month. This is much more expensive than a normal mortgage. Both these sorts of short term loans are usually available very quickly.
No credit check loan
A no credit check loan is a loan that is
usually short term but has very high interest
rates and fees. The sort of person that
would take one would be likely to have a pile of bad credit
already, or no credit history at all. People that have just
started working in the country, or people that are in work
but have never had credit before are also likely to go for
this option.
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