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Looking for an alternative to short term loans?

118118Money.com
  • You could consider a credit card instead
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 34.0% pa (variable) Representative 34.0% APR (variable)

What are short term loans?

A short term loan is usually a smaller value loan that is scheduled to be paid back within 12 months. However, the payment period can vary from lender to lender based on the amount, purpose and terms.

118 118 Money is not a short term loan lender, nor do we offer a payday loan. Our loans are repayable over 12 – 36 months. If you are looking for a short term loan alternative, then you could consider one of our credit cards instead.

Apply for a credit card from 118 118 Money with confidence
Use our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
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Why use a credit card from 118 118 Money as an alternative to a short term loan?

Here are the reasons why you could consider a credit card from 118 118 Money as an alternative to a short term loan:

Depending on the lender, short term loans or payday loans can have higher rates of interest than our credit cards, which are currently available at a Representative APR of 34.0% pa (variable)

Subject to status, you could be eligible for a credit limit of up to £1,200.

You’ll get up to 51 days interest-free if you pay off your full balance each month.

As long as you have good repayment behaviour, you’ll have a continuous line of credit with a credit card.

You can increase your monthly payments to clear down your debt more quickly – with a short term or payday loan, you could be tied to fixed monthly payments over a fixed term without the ability to pay down quicker and reduce interest charges. Using a credit card as an alternative, you’ll always have to make the minimum monthly repayment, it is best to keep good financial habits and repay your borrowing as quickly as you are able to.

These are just a few of the reasons why a credit card from 118 118 Money may be a better solution for your short term borrowing needs, but you should always do your own research before making a decision.

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Want to apply for a credit card?

  • Alternative to a short term loan
  • No fees*
  • Check your eligibility with no impact on your credit score
Check my eligibility *We do not charge any fees. However, third party vendors may have their own charges. An example of this is an ATM where a usage fee could apply.

How do credit cards work as an alternative to a short-term loan?

If you take out a credit card as an alternative to a short-term loan, you’ll be able to cover your short term loan borrowing requirements by paying for things with the credit card rather than a loan.

With a credit card, you can choose to pay off your balance in full, or spread the cost of borrowing over a longer term. As long as you are making the minimum monthly payment you can pay off your balance in several smaller repayments, or in a larger lump sum repayment. It should be remembered however that spreading the cost of borrowing over a longer term will result in higher interest payments overall and you should always try and pay more than your minimum payments where possible.

Choosing the right short-term borrowing solution for you

At 118 118 Money, we make borrowing money a simple and transparent process. We take a sensible approach to lending and will never offer you a product for more than you can afford to repay.

We look at more than your credit score and understand that unexpected expenses happen – this is why we are as flexible as possible around your specific financial needs. If you are worried about your credit score, you can try our eligibility check. This means you will know your likelihood of acceptance before you apply for a credit card with us, and it won’t impact your credit score.

Our credit cards have no upfront or hidden fees guaranteed and our online application form on your mobile phone, tablet, or laptop is very straightforward. Our eligibility check also lets you know what guaranteed credit limit we’ll offer you before you apply.

Should I consider a credit card as an alternative to a short term loan?

Before you make a loan application, you could consider a credit card instead. Credit cards as an alternative to a short term loan can be used to cover unexpected emergencies such as a car repair bill or for unexpected bills which could leave you short on money to pay for other necessary bills or costs.

Apply for a short term loan alternative from 118 118 Money

Want to apply for a credit card with 118 118 Money? You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

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Short Term Loan Alternative FAQs

You might find that the quick convenience of short term personal loans may also come with high interest rates - sometimes 1000% APR or more!

It’s important to choose a provider that offers repayments you can definitely afford, and to fully understand all of the terms and conditions of the loan you want to apply for.

Before applying for a short term loan, you should always consider the following:

  • What APR will I be charged?
  • Are my repayments fixed amounts each month or variable?
  • Can I repay the loan wholly or in part early?
  • How quickly will I get my money deposited?
  • What alternatives are there?
  • Are there any hidden costs?

By comparing the various lenders and short term loans available to you, you’ll begin to see the impact that higher APRs and longer repayment terms have on what you can afford to borrow. Even if your monthly repayments remain fixed, 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’s more than the interest you repay, it also affects how much you can afford to borrow in the first place.

If you’ve got poor or bad credit, or no credit at all, you’ll be keen to improve your credit score. You can find options for small loans by searching the internet. Lenders will usually perform a credit check as part of the application. By making your repayments on time and avoiding making a late repayment, you could start to build your credit score.

Short term borrowing can be used for various expenses. Most often, it is used to cover an unexpected emergency such as a car repair, a small home improvement, or any other unexpected bills.

If you’re concerned about your credit history, there’s no need to panic and accept the first offer you get. It’s important to look around and compare loans. A credit card with 118 118 Money might be the ideal solution, even if you think you have bad credit.

The 118 118 Credit Card could be the answer to your short term borrowing requirements. With a guaranteed credit limit of up to £1,200, and a simple, flat interest rate, you will be charged the same for all transactions, including purchases, cash withdrawals, balance transfers and money transfers.

There are no fees with the 118 118 Credit Card – the only exception to this is third party vendors who may have their own charges, for example an ATM where a usage fee could apply.

At 118 118 Money, we make borrowing money a simple and transparent process. We take a sensible approach to lending and will never offer you more than you can afford to repay. You can use our eligibility check to see what credit limit we’ll offer you, without affecting your credit score.

You can apply for the 118 118 credit card as an alternative to a short term loan by using our eligibility check. It will tell you what credit limit we’ll offer you and may be quicker to complete than a standard loan application.

118118Money.com

Ready to apply for a credit card from 118 118 Money?

See if you’ll be accepted before you apply and find out what credit limit we will offer you without affecting your credit rating!

118118Money.com