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Can I use Short Term Loans to Pay for Anything?

It is often the case that you might be restricted when it come to borrowing as to what you can spend the money on. For example, if you get a car loan, then you will need to use that money to buy a car and the same with a mortgage where you will need to use the money to buy a home. However, there are loans where you can use the money to buy anything you wish as the lender will not specify or check. This is the case with a short-term loan.

However, there are still some restrictions which you need to be aware of which could limit what you use the loan for. Although these are not ‘rules’; due to the limitations of the loan it could mean that your choices will be limited.

Amount you can borrow

With a short-term loan, you will normally only be able to borrow up to a maximum of £1,000. This amount will depend on the lender though. Some lenders will only lend small amounts to first-time borrowers such as a few hundred pounds. This means that if you are a first time borrower, you may find that you are restricted in the amount that you can borrow.

If you want to buy something with the money form the loan then you will be restricted in what you can buy depending on how much money you get lent. You may find that it will not be enough to afford the item that you are hoping to get. It is worth noting though that different lenders will have different criteria and so some may lend more money to first time borrowers than others. This means that you may want to approach several and see whether you can find one that will lend you enough. Of course, if you only want a very small amount anyway, then this will not impact you at all.

Cost

It is also worth thinking about the cost. All loans cost money and it is a good idea to find out how much it will cost you before you take it out. Then you will be able to work out whether you think that it is worth it. It is a good idea to think about the cost of the item you are buying with the loan. Then add the cost of the loan and think about whether you would still want to buy this item even if it cost that much money. It might be that you have little choice, perhaps if what you are buying is a necessity, but if you do have a choice, then have a think about it.

Term of the loan

It is also worth noting that a short-term loan will only last for a few weeks or even days. This means that you will need to repay it in full, very quickly. Therefore, if you need the money for a while, then this may be a suitable loan type for you. The loan will need to be repaid on the next day that you get paid. This could work out fine, but it will depend on the purpose of the loan whether this will suit you. Sometimes it can be the case that we know that we will not be able to afford to repay the money for some time. If this is something that you feel will be the case for you, then it could be that the short term of this loan will just not be suitable for you.  

So, you will have to consider whether it will work out for you. It will very much depend on the circumstances that you are in and whether you are happy with using the loan like this. It is a good idea to spend some time thinking about these things though as you could find that you will be in a better position to make a good decision about whether to take out the loan or not. It is good to consider the value for money you are getting from the loan and how closely it will fit with your requirements. It is no good just taking a loan out for the sake of it if it does not meet your expectations.

They will be able to be used for most things as long as they are not too expensive as you will be restricted in the amount of money that you are able to borrow from them. You will also only be able to borrow the money for a short amount of time, so you need to think about whether this will work out for you. You also need to think about the cost of the loan and whether you are happy to pay that extra money to get what you need.

Can I use Short Term Loans with a Poor Credit Record?

If we have a poor credit record it means that we will often be turned down for loans. This can be a big problem for us, if we need to borrow money. It is therefore worth finding out more about what a credit record is, how we can improve it and whether we still borrow with a poor one.

What is a credit record?

A credit record is a document which shows details of someone’s personal finances. It will have information such as what loans they have now and have had in the past and if they are keeping up with repayments. What regular payments are being made for things like utilities rent, contracts etc. What loans have recently been applied for, including ones that have been declined. It also has your address details, whether you own or rent, your income details and your household income.

Ideally you want the best possible credit record that you can have as if it is a good a lender is more likely to give you a loan. However, it can be quite complicated. This is because some lenders will have different criteria when they are judging whether to lend to you, compared with others. This makes things tricky as you do not know where or what to improve or whether you are likely to get a loan. Some lenders like you to have missed a few payments because lenders can profit from people doing this as they charge extra for it. However, most will want to see that you make payments on time. This can make it difficult to know exactly what will look good.

If you check your own credit record then this can help you to see where you might be able to change it. You can do this for free and it does not leave a trace on the credit report that it has been looked at.

How can it be improved?

If you take a look at your credit report it is worth starting with looking to see if the details are correct. It will have name, address, dependents, earnings and things like this which you can update if they have changed. It is really important to keep these things up to date as they could make a significant difference to your credit score. For example, if your children have started work, they will no longer be dependent, if your earnings have gone up that will have an impact and if you have moved house you will need those details to be changed. You will also need to check all of the information to make sure that it is correct as if you didn’t pay for an item because it didn’t turn up but that gets flagged up then you will look untrustworthy so make sure this is clarified and removed.

There are other things that you can do that will help you to be able to improve your credit score so you may want to try some or all of them. You want to start by making sure that you have registered to vote. The electoral role is used by lenders to check your address and if you are not on it, you are unlikely to get any loans at all.

If your accounts are linked to someone else (such as your spouse) and they have a poor credit score, then you could be assessed to be the same as them. So be careful if your name is jointly on mortgages, loans, bank accounts and utility bills as if they have a poor credit history you could be brought down because of it. Another tip is to not withdraw cash on credit cards. This is because you will look as though you are desperate for money – so always make sure that you use your debit card to draw out cash.

Can I borrow with a poor credit record?

If you have a poor credit record and need to borrow money soon, you will need to find a lender and there will not be time to improve your credit record. This means that you will need a lender that will not worry about what you credit record has on it. Luckily, there are now lenders which fall into this category and do not worry about your credit record. They will need to use it to check your address but they will not worry if you have missed loan payments or any of the other problems that might cause other lenders to decline you credit. These loans are short-term loans, or they be known as payday loans, no credit loans or by other names. They will be available to most people and you will normally be able to borrow up to £1,000 without having to have a good credit record.