Sometimes those unexpected expenses pop up, such as a car repair or a vet bill, and you need a bit of cash to cover the bills. This is where a short-term loan could help you where repayments are spread over a period of up to 12 months. Most lenders have a ‘short-term loan’ option for people who need a smaller sum of money over a shorter term. You may also come across descriptions such as ‘unsecured loans’ and ‘instalment loans’ and in fact any loan with a repayment schedule of between a few days and under a year, is considered a short-term loan.

When you look into what these short-term loans offer, you may find that the short-term convenience also comes with a high interest rate of close to 1000%. It’s really important that you choose a provider that won’t offer you a loan with repayments you can’t afford and that you fully understand all of the terms and conditions of the loan you want to apply for.

How do I decide if a short term loan is the best choice?

There are alternatives to short-term loans which you may be able to consider such as 0% credit cards or an overdraft, but to qualify for some of these options you will need to have either good credit history or an available overdraft facility.

What if my credit history isn’t great?

Even if your credit score shows a less than perfect story, some lenders will work with you to help to improve this over time and will tailor the terms for a new loan that will be realistic for you to manage.

Here at 118 118 Money we aim to lend money to people who need it and will look beyond your credit scores to take your complete situation into consideration.

How can I work out what I can afford to borrow?

Take a look at our reasons to borrow page to see what our financial experts think is important to consider when deciding to take out a loan. There are many elements which you must think through before signing a loan agreement. Ask yourself how much can I afford to repay each month and how much can I borrow based on my circumstances?

In order to help you select the right loan option, use some easy and simple tools to see how much you can borrow and how much you will have to pay back over different terms. Try our personal loans calculator that will show you how much you can afford to repay. Some lenders will also allow you to do a quick credit check, so you can instantly see if you are likely to be approved for a short-term loan and these can avoid having to trigger a search on your credit file, which can hit your ability to get credit in future. Your credit history will be used by lenders to help them to assess how much of a risk lending to you would be.

What should I consider when choosing a lender?

Compare different lenders to see if you can find an offer which best meets your needs and circumstances, and think about how important each of these things are to you:

  • Will the loan be unsecured or secured against my property or car?
  • What APR (Annual Percentage Rate) will be charged?
  • Are my repayments fixed amounts each month?
  • Can I repay the loan wholly or in part early?
  • Are there any upfront costs?
  • How quickly will I get my money?
  • What are the hidden costs?

By comparing lenders and loans available, you will begin to see the impact of higher APRs and longer repayment terms have on what you can afford to borrow. Even if your monthly repayments remain fixed, you will see that the amount you can borrow will vary. This will help you understand the real cost of the APR over the period of your loan – it is more than the interest you repay, it affects how much you can afford to borrow in the first place.

How do 118 118 Money loans work?

You are not alone! We are a loan. At 118 118 Money, we make borrowing money a thoughtful and transparent process. 118 118 Money takes a sensible approach to lending and will never offer you more than you can afford to repay. We will let you know from the start how much money you will need to set aside each month. However, if you are struggling to make the repayments, you should speak to a member of our team as soon as possible. At 118 118 Money we look at more than your credit score, we understand that unexpected expenses happen and we are as flexible as possible around your needs.

We review each application individually. Our loans have no upfront or hidden fees guaranteed. Use our simple online application form from your mobile phone or tablet to apply. We try and provide a decision within an hour and if approved, the money you borrow is sent to your bank account within 24 hours.

People tell us 118 118 Money is straightforward, honest and fair. Our aim is to accept, not to reject, so why don’t you give us a try and complete our easy online application form today.

Representative example: Amount of credit £1,810.48 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £143.48. Total amount repayable: £3443.52. Representative 99.9% APR.

Rates from 35.9% APR - 99.9% APR fixed.