There are many reasons why you might have to apply for a short-term loan. A faulty boiler or a broken-down car, emergencies that you can’t plan for, but all have an added cost. This might leave you wondering how you’re going to manage to pay these extra expenses. You might find yourself considering a Quidmarket short term loan to help you manage or you might take a closer look at your finances to see if there’s any movement. Maybe you’re worried that this will have an impact on your personal credit? Find out how a short-term loan can impact you below.
Short Term Loans
A short-term loan can be a simple and fair alternative to a payday loan. These loans are often repayable between 3-6 months depending on which is right for you. They tend to be more manageable than payday loans due to their flexibility. They are also available if you suffer from a bad credit score. Short-term loans can work well to help you meet your short-term financial needs and give you flexible options on how you pay them off.
Whilst it is always best to work on having a good credit score, it is not always necessary for short-term loans. 3-month loans can help people with bad credit scores and help to keep your expenses under control in an emergency, although it is still important that you can demonstrate that you can afford your repayments. Checking your monthly income and outgoings can help you when making your decision to apply for a short-term loan. 3-month loans are just that, they are not designed to cover any long-term difficulties, so considering your position in the short term is the best way to proceed.
Mortgages after Payday Loans
Getting a mortgage after applying for payday loans is possible! Depending on how regular and recent your payday loan usage is and how your credit score has been in the past will affect how a lender proceeds with your application. Bad credit, as well as regular usage of payday loans, will lower your chance of approval but this does not mean it is not possible. Lenders will often consider the severity and reason for your bad credit.
Credit Reports
Downloading and reviewing your credit reports can help to increase your chances of getting a mortgage. By reviewing these reports, you can challenge anything you think might not be correct, as well as be able to have outdated information removed. Your broker can always suggest ways how to optimise your credit reports, ahead of applying for your mortgage.
Seeking Professional Advice
Having payday loan usage on your credit report can be difficult to navigate when looking to take out a mortgage. It is possible that lenders will reject you and others may increase prices. Talking to a professional such as a broker can help to find you lenders which are more likely to review your situation and give you the best chance of having an application approved.
