Ever found yourself just a bit short on cash before payday? You're not alone, and a short-term loan might seem like the answer. But how can you increase your chances of getting one?
The chances are that if you’re reading this article, you will be doing so because you are considering applying for a short-term loan, and want to help ensure you get accepted by your chosen lender.
People in a wide range of circumstances look to apply for short-term loans. You might be interested in doing so because you are in a short-term financial squeeze, and know you will be able to repay what you borrowed when your next payday arrives, or over the next few months.
Other possible applicants for short-term loans might be seeking one to fund something in their lives that is technically merely “optional”, but nonetheless desirable – for example, some home improvement work, or even a holiday.
Warning: Short-term loans can be an expensive form of borrowing. Always ensure you understand the terms and the associated costs before you apply. Missing repayments can cause you serious money problems.
Whatever your situation may be, it will help if you know a few things about how to maximise the chances of a positive outcome from your application for a short-term loan. So, let’s take you through just three of the easiest ways to do exactly that.
Some of the reasons why people get turned down for short-term loans, really are some of the most ridiculously simple (and yes, seemingly “obvious”) things.
Yes, that’s right; we’re urging you to be super vigilant in checking that you satisfy your chosen lender’s eligibility criteria, before you submit your final loan application to them.
Although the exact eligibility criteria that a given lender sets for a loan will likely vary from what another lender will present, there are certain standard requirements that borrowers can expect to need to meet. These include being at least 18 years of age, being a UK resident, and being in receipt of the regular income that will enable them to actually repay the loan.
Again, it’s something super simple, but effective for those who are trying to get approved for short-term loans: making sure they are on the electoral roll.
Getting registered on the electoral roll isn’t just something that will enable you to vote; it will also help your efforts to achieve a positive outcome when applying for a loan. This is because it makes the lender’s task of verifying your identity so much quicker and smoother – which in turn, helps them to make an informed decision on your application with minimal fuss.
When you’re filling in that application form for a short-term loan, having hopefully done your sums and worked out exactly what you require in order to bridge the financial gap you have, it might cross your mind to perhaps ask for a “little extra” on top.
You know what we’re referring to here. If you’re in a tight space financially anyway, you never know when that slightly more cash than you strictly “need” might come in useful, right?
However, our advice on this subject is: don’t. If you apply for a higher loan amount than you strictly need, you could be putting yourself at risk of the lender turning you down. Remember, after all, that they will be assessing your loan request alongside such factors as your creditworthiness and current income, and they will want to be sure that you will definitely pay the borrowed sum back.
Plus, the greater the amount you borrow, the greater the amount of interest you will need to pay on all of that borrowing. So, for a few reasons, it’s well worth trying to keep your requested loan amount as small as possible.
There you have it – three pieces of advice that those applying for short-term loans ought to keep in mind when they approach lenders or brokers such as CashCompare. CashCompare is an authorized credit broker regulated by the Financial Conduct Authority, Firm Reference Number : 922324. Please note that CashCompare may benefit from referrals or applications as a result of this article. We aim for transparency in all our dealings.
Thankfully, we offer a short no-obligation quote request form that will assist you in your efforts to borrow only the money that you need – and that you will be able to repay.
Before making borrowing decisions, we recommend seeking independent financial advice to ensure the best choice for your individual circumstances.
"Warning: Late repayment can cause you serious money problems. Always consider if borrowing is the right option for you and ensure you can repay your loan." For help, go to moneyhelper.org.uk.