Short Term Borrowing: The Best Options

Short Term Borrowing: The Best Options

Struggling to make ends meet until your next pay day? Moving house and need a loan to pay off expenses whilst you wait for incoming funds? Had an unexpected cost come up and need to borrow to pay for it? The reasons for needing a short term loan are endless, and many of us find ourselves in such a situation from time-to-time.

Unfortunately, short term loans are often hazardous and high-interest forms of financing, and, as such, it is crucial that you consider your options carefully in order to avoid being stung. What proceeds is a couple of fundamental tips regarding how best to go about getting a short term loan.

Appraise All Your Options

Before taking out a short term loan, consider all other possible avenues you could take first. For instance, if you’ve got a decent credit rating, it might be more prudent for you to go for a credit card rather than a loan. Short term loans are typically high interest, so, if you wanted to borrow £1000 for 3 months, you could end up paying back as much as £1100, or even more.

Try A Credit Card

If you’re eligible for a credit card that has 0% on purchases for the first 3 months, you can obtain and use that to by what you need, and, as long as you completely clear the balance within the three month period, you’ll have walked away having paid nothing for your loan!


Similarly, enquire with your bank into the possibility of a 0% overdraft. If your credit rating doesn’t qualify you for any kind of 0% credit, consider other options for obtaining the money – ask family and friends if they can lend it to you, or even check to see if you’re eligible for any government or charity grants.

Try Going ‘Flexible’ First

If you have exhausted all your other options, and found that you really do need to get some cash on a short-term deal, your first port of call should be what’s known as a flexible loan. These are like normal long-term loans, except that they come without rigorous repayment schedules and, crucially, don’t charge penalties for early repayment.

This means that you’ll be able to borrow a decent amount on a relatively low interest rate (around 5-18% on average, with what you’ll pay within that scale depending on your credit score), and repay it either all in one or in instalments at times that suit you.

Specialist Short Term Loans

Should you find yourself unable to obtain a flexible loan, you may be able to secure a special short term loan from a reputable company like or  You’ll be able to borrow from £50-£1,000 for up to 42 days, for payback on your next payday or chosen payback date.

Choosing a short term loan can be a daunting process, but with a little research, you’ll find plenty of options to suit your needs.

Wendy Lin is a retired university lecturer who is now a successful female business owner. She enjoys travelling, skiing and hiking. When she’s not working or travelling, she can be found painting her custom watercolour art.