We save money for unforeseen expenditures, but financial emergencies can come up anytime when our savings might not seem enough. This is when an extra bit of cash is needed quickly and applying for a short-term payday loan is the only best option left.
What are short-term payday loans?
A short-term payday loan is a loan that can be paid off within a short time and the amount borrowed is usually small as compared to other loans, between £10 to £1500. The loan is to be paid back in installments with interest.
Short-term payday loans are viewed as a one-stop solution in need of sudden and quick money without declaring an asset as a security. However, they require a credit check based on which you will qualify for the loan. Some lenders may lend you even if you have a bad credit score but they also do perform a credit check.
UK Lender that welcomes all credit histories
If you are looking for a short term loan no credit check in the UK, LoanPig can be the best option that uses innovative technology and offers an efficient, fast, and easy application process allowing its customers to securely apply for a short-term loan. LoanPig is a direct lender and a loan broker giving access to one of the largest panels of lenders in the UK so that you find the best deal.
They ensure that their customer never has to pay more than double the borrowed amount. The company is authorized by the Financial Conduct Authority (FCA) as a short-term payday loan lender offering the best payday loans online with clear terms and conditions and no hidden costs.
Credit score needed in the UK for a short-term loan
There is no exact value in the UK that defines a good credit score as different lender companies have different criteria for considering applicants based on their credit score.
- Customers with a credit score of above 700 are considered preferred borrowers and can expect a low rate of interest on their loans.
- Customers whose credit score is between 600 and 700 usually qualify for most creditors and lenders.
- Those with a credit score of below 600 are considered poor credit holders and very few lenders consider their applications.
- However, they might be offered a deal but with a high rate of interest of 30% or more.
How to keep your credit scores healthy?
A few ways to maintain a healthy credit score are:
- Make full payments on time and avoid defaults.
- Keep your electoral registration up-to-date for proper verification.
- Having a credit history as it helps in building a good credit score.
- Maintaining minimum credit utilization.
Short-term loans are suitable for unexpected costs or cover an emergency expense that needs to be covered immediately. It is the best solution to pay for something that is not possible to afford at that time. Since taking a short-term payday loan is a serious financial commitment, hence, you must borrow the loan only from a reputed lender that is regulated and authorized by FCA to do business in the UK financial sector.
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