Long gone are the days when getting a loan involved visiting a lender's physical office and discussing your borrowing needs face to face, worrying if you are being judged. These days, so much of our life has moved online and borrowing money is no exception. Today, you can apply for an online loan from a range of lenders at a time that suits you and find out the decision within a matter of minutes.
If you have never needed to borrow money before and you are not sure how the online application process works, you have come to the right place. We will go through the process of applying for a loan online and let you know exactly what you will need to maximise your chances of a successful application.
What Are Short Term Loans?
A short term loan is designed to help cover any unexpected expenses that cannot wait until payday or to spread the cost of a purchase that you want to make over 3 to 6 months. It is intended to serve your immediate financial needs, so it will give you quicker access to funds than, say, a traditional loan from a bank or a credit union.
When you work with a direct lender in the UK, like us, you will be able to apply for a loan online in just a few minutes. All applications are subject to creditworthiness and affordability assessments and you will need to meet our eligibility criteria to be approved.
How to Apply For A Short Term Loan Online
Here is how to apply for a short term loan online in five simple steps.
Step 1: Research Lenders
Getting access to credit quickly is one of the main reasons many people in the UK apply for a loan online. However, even if you are in a rush, it is still worth taking that extra half an hour to research different lenders.
There is a wide range of firms offering different forms of online credit. There are options of different loan amounts, repayment frequencies and interest rates. It is worth investing some time to find an option that you think will work best for your individual needs.
Step 2: Read & Understand Your Loan Agreement
Before you agree to any loan offer, make sure you read through your draft loan agreement carefully and check that you understand the terms and conditions before you borrow. Your loan agreement will cover a range of issues, including the total cost of credit you are taking and any charges or late payment fees that may be added to your balance if you are late with your payments.
Step 3: Understand How Your Credit Score Will Affect Your Loan
If you need a loan ASAP, there is not much you can do about your credit score before you apply. Nonetheless, it is worth knowing that this will play a big role in the loan application process, since most lenders will check your credit file to decide whether to accept your application.
You will not automatically be rejected, just because you have a lower credit score, but there is a good chance you will end up paying a higher interest rate and it will cost you more to borrow the money you need.
Step 4: Wait For Your Loan Decision
Once you have submitted your loan application, you will normally find out right there and then whether your application was approved or rejected. Sometimes a lender may need to take further steps to confirm the details of your application. In that case, you may experience a slight delay while the lender reviews any additional information that you provided.
If your loan is approved, the funds will be transferred straight to the bank account details you provided in your application form. We are able to transfer loans within minutes of approval at any time of the day, but some lenders may only process their transfers during regular working hours.
Step 5: Stick to the Repayment Schedule
With the majority of online lenders, you will need to make monthly repayments for your short term loan, with the exception of those offering traditional payday loans, where a single payment is expected on your next payday. Payments are typically deducted from your bank account automatically by direct debit or continuous payment authority. And it goes without saying that you will need to budget carefully to repay the loan in full and on time. Missing payments may be reflected on your credit file and can make borrowing more difficult or more expensive in the future.
If you are experiencing financial difficulties and need help with your payments, talk to your lender. They will be able to discuss your individual circumstances with you and provide tailored support to help you repay in a way you can afford.
