Short Term Loans

Get between £100 - £5,000 paid out by

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  • 100% Online Process

  • Borrow up to £5,000

  • UK Based Lenders

  • Bad Credit Accepted

  • 2 Minute Application

  • Same Day Transfer

  • Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
    *Subject to application being approved by the lender. Not all lenders are able to provide up to £5000.

    Your Complete Guide to Short Term Loans

    Individuals and businesses alike can benefit from short term loans, so it is important to learn everything you can about them. If you need to borrow money for any reason, this is a borrowing option you should consider. In this article we will cover everything you need to know about these loans so that you can make the right decision.

    What Are Short Term Loans?

    Short term loans are typically given out in amounts of a few hundred to a few thousand pounds. These loans can have terms of a couple weeks to a full year. Unlike long-term instalment loans, these are not spread out over multiple years. You will have to repay the principal amount of the loan plus interest and other fees. The interest rate you get depends on a number of things, including the state of your credit and the lender.

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    Benefits of Short Term Loans

    There are plenty of benefits associated with this type of loan, including:

    • Less interest: Because short-term loans have terms of only a couple weeks to months, you won’t end up spending as much on interest.
    • Fast access to funds: A lot of lenders offer extremely quick access, so you can get the money you need right away.
    • Less risk: With a short term loan, you will have an easier time determining whether or not you can afford it. This will essentially reduce your risk of defaulting on the loan, which could damage your credit a lot.
    • No collateral: Most short-term loans are unsecured, which means that they don’t require any collateral. You won’t need to run the risk of losing any property if you cannot pay back the loan.
    • Improve your credit: If you pay off your loan on time, you can improve your credit in a very noticeable way. You should see a substantial increase in your credit score shortly after you pay off the full amount of the loan.


    Many different people are eligible for bad credit loans and they don’t even realise it. There will be some requirements that you should know about before moving forward. You will need to be over the age of 18 and a legal UK citizen. You must also have a permanent address and phone number for the lender to contact you.

    All short-term loan applicants need to have an active checking or savings account as well. If you are approved the money will be electronically transferred into your account.

    One of the most important things that will determine your eligibility is income. The lender will take a look at how much you make based on the documents you have provided them. They will use this information to determine whether or not you can actually afford the loan. The amount of money you make directly impacts your ability to get approved for the amount you apply for.

    Most lenders will run a credit check on everyone who applies for a short-term loan. They look at the applicant’s credit histories and scores before making a final decision. It is important to remember that some lenders care more about credit than others.

    A lot of private lenders that are based online don’t require applicants to have good credit. This is just one of the reasons why so many people in the UK have started borrowing from private lenders as opposed to banks and credit unions. It makes getting the money you need a lot easier overall.

    Where to Apply

    While some banks or credit unions do give out this type of loan, they are mostly available through private lenders. Most of these lenders are based entirely online. They have websites that you can go on to learn more about them and fill out an application.

    It is crucial that you take the time to find the right lender to get your short term loan from. With all of the different choices that exist, you don’t want to rush into a decision you’ll later regret. Make sure that you look for a lender that has a good overall reputation. One of the best ways to judge a lender’s reputation is by finding out what their previous customers have to say. Read some reviews for these lenders before you make a final decision.

    Keep in mind that you can learn a lot about a private lender by simply visiting their website. Take note of how professional the site looks and how much information they give you. You want to choose a lender that has a policy of complete transparency.

    You can also choose to hire a broker to find you the best deal on a short term loan. This can save you some time doing research, but it usually comes at a price. If you do decide to go with a broker, you should take the time to find the right one. There are plenty of websites that connect prospective borrowers with lenders. Don’t simply choose the first loan broker service you find online, because there are tons of options to sift through.

    Applying for Short Term Loans

    These days applying for short-term loans is easier than ever, because it can be done online. You can apply from anywhere, provided you have a computer or mobile device and Internet connection. The application process is typically not very time consuming. You will be asked to submit basic contact details as well as income information.

    The lender will require you to submit photo ID, such as a driver’s license or passport. You can typically complete a standard short term loan application in less than an hour.

    It is very important to only submit truthful and accurate information with your loan application. Lying about even the smallest details will significantly increase your chances of getting your application rejected.

    Before you apply for any short term loans, you should make a point of checking your credit file to ensure that it is up to date. Look for any mistakes on it so you can get them changed as soon as possible. You should also get organised and collect all of the documents you’ll need when applying for one of these loans. This will help to streamline the process of getting the loan you need.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    Repaying Your Short Term Loan

    There are a few things that you need to know when it comes to repaying 12 month loans. It is important that you know the due date of your loan. If you fail to pay back the entirety of the loan by this date, you will be charge some rather substantial late fees. Being late on paying back your loan will also hurt your credit, so you need to keep that in mind as well.

    The lender will most likely take the money you owe them from your account each week or month. You will agree to this when you sign the loan contract. It is a fairly standard aspect of obtaining this type of loan.

    Most lenders will allow you to pay back your short term loan early, though some charge a penalty fee for doing this. You should find out in advance if you will be charged for paying back your loan before the due date. It’s always preferable to do this, as it can help you save some money on interest.

    If you are making instalments each month on your loan, you can choose to pay more than the minimum required amount. This is the best way to pay off your loan early and therefore save money. The shorter your loan term, the less interest you will end up paying overall.

    In the event that you are unable to pay back your loan on time, you should contact your lender right away. Let them know what your situation is so they can work with you. Most lenders are fairly amenable when it comes to giving extensions. You’ll still most likely end up paying additional fees, but you might be able to avoid having the debt go to collections. This will help you pay off the money you owe while minimising damage to your credit.

    Reviewing the Loan Contract

    When you get approved for a short term loan, you will be given a contract to sign with the lender. This contract will lay out all of the details of the loan, and you’ll need to read through them very carefully.

    It is important to look for certain things, including the APR or interest rate of the loan, the term (how long you have to pay it back), and the total amount of your monthly payments. You also need to know about any and all fees you might be charged, including late fees.

    Final Thoughts

    Short term loans are a very popular borrowing option in the UK, and for good reason. These loans can really help you out when you need money right away. It is a good idea to explore your lender options and compare offers so you can get the best overall deal on the loan you need.

    Warning: Late repayment can cause you serious money problems. For help, go to Happy Penguin is a broker, not a lender, and does not make credit decisions.