Short Term Loans

Short Term Loans You Should Take Out in 2019 to Tide Over

Are you looking forward to taking out personal loans with no guarantor?

During an emergency, everyone leaps at short term loans because these loans come with instant approval. However, these loans are quite tricky for the reason of high-interest rates. Anyone can apply for these loans but interest rates vary from individual to individual depending on credit score. The higher the score, the lower the interest rates will be. The lower the score, the higher the interest rate will be.

There are several short-term loans on the market such as personal loans with no guarantor, cash loans, text loans, payday loan, and unemployed loans.

A brief on each type of short-term loans 

Short-term loans come with a small amount and therefore, they are more likely to get easily. This year take out the following loans to tide over your unexpected expenses.

  • Cash loans

Cash loans are the best loans if you want very small size of the loan. The maximum limit of these loans may vary from £750 to £1000. It depends on the policy of a direct lender. Whether you need money to fill fuel in your car or you need it to pay your medical bill, you will get funds despite your poor credit score.

Cash loans

  • Text loans

You are in the restaurant and the bill is on your table. You have had your pocket picked. Do not panic; tug out your Smartphone and text the message to your lender. Your lender will assess your application in a couple of moments and disburse funds. These loans act as a shield to avoid embarrassment.

  • Personal loans with no guarantor

Personal loans allow you to take out a large amount of money. You can take out around £25,000. The best part of these loans is you do not have to pay your debt in one attempt. You will pay the loan in regular instalments and all of them will go to both capital and interest. These loans are unsecured loans therefore, they do not require collateral. You also do not need to arrange a guarantor.

Personal loans


  • Payday loans

Taking out payday loans is not a bad idea if your credit history is good. However, you will end up with paying high-interest rates in case of deplorable credit score. Make sure that you can afford repayment. These loans come with a very short period, usually for two weeks. As you receive your next paycheque, the amount is automatically deducted.

Which short-term loans should you avoid this year?

Just because short-term loans are approved instantly, does not mean that all of them are favorable to borrowers. You should avoid applying for these loans:

  • Cash advance

The money that you withdraw by using your credit card is known as cash advance. These loans are extremely expensive. You will pay fees along with interest. Note that interest rates are higher than other short-term loans and there is no grace period. Cash advance damages your credit score.

Cash advance loan

  • Secured short-term loans

If you want to take out funds more than the maximum limit or you want to borrow at lower APR, your lender will ask you to put security against your loan. These loans are very risky because the lender will liquidate your asset if you make any default.

Pros and cons of short-term loans

Short Term Loans

Every coin has two aspects, similarly, short-term loans have both positives and negatives.


  • You can get these loans without further ado because of smaller size. A good credit score is not mandatory.
  • The length and size of these loans is small, so you can get rid of them quickly.
  • The total interest you pay on short-term loans is lower than long-term loans because of the shorter repayment term.
  • You can put in an application online. You do not need to dissipate your time in the loan process. You will get the loan in minutes.


  • Although these loans come with a smaller amount, you may still feel a burden because of repayment of the entire debt in a lump sum. You need to be careful of your paying capacity. Most of the borrowers end up with rolling over the loan or taking out a new loan to pay the earlier debt.
  • Some loan companies may disburse you funds at very high-interest rates. Do research extensively before you take out any loan.

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