Finding yourself in a financial crunch is a very bad feeling. It is mentally draining for an individual to find himself in need of money and find no help to solve this issue. Problems never come with a notice.
They just appear in front of us and all that we can do is face them with a tight upper lip and find a solution. There are many solutions to your financial needs too.
There are many choices for you in the market to choose from when it comes to taking loans. You can take a short-term loan or you can take a payday loan.
Many people think that both of these are the same, but there are a few areas where these types of loans differ. In this article, we will discuss these loans.
However, If you are searching for a trusted lender in the UK for bad credit payday loans then you must reach out to LoanPig. They offer up to £1500 as a loan to their clients.
They also help their clients in connecting with other lenders who give the best deals to them. Their loan terms are flexible for up to 12 months and the repayments are rather easy.
LoanPig is both a lender and a broker payday loan. They offer loans without looking into the credit history of their clients. This ensures that even if you have a miserable credit history, you will not be left disappointed.
Your credit needs will be fulfilled. All that you have to do is to fill out some online forms and give relevant details like the income proof, which ensures that you will repay loan.
Difference between a short term loans and payday loan
Short-term loans are vague term. Any loan which has a short term can be termed as a short-term loan. A loan qualifies to be called a short-term loan if the repayment tenure is less than 12 months. Short-term loans are just another type of High-Cost Short Term Credit (HCSTC). This means that a person who takes a short-term loan is required to pay a higher rate of interest.
A payday loan is a type of loan which is generally taken for a few months. If your financial condition gets stable, then you get the chance to repay the very next day. The main difference between short-term loans and payday loans lies in the number of payments made. The payday loans are paid back within a couple of months.
According to the law, payday loan companies and short-term creditors are prohibited from charging you more than £24 for 30 days on for every £100 borrowed. Hence, some lenders will charge you this interest rate while others may charge less. Furthermore, the law also bars the money lender from charging the interest sum more than the original loan amount.
Conclusion
Payday loans are different from short-term loans although the terms are used interchangeably many times. You must analyze what suits you before taking a loan.
