What is a short term loan?
A short term loan, is a type of personal loan, that is usually paid back in a short period of time. This could range from a few weeks up to a year, depending on the lender. Short term loans can help borrowers with unexpected problems, like repairing a faulty boiler or paying for a costly MOT, without committing to a long-term agreement.
It is also possible to get accepted for a short term loan if you have a bad credit history or you've been rejected by other lenders. This isn't always the case though as different lenders have different criteria, but if you've recently been turned down for credit elsewhere, it might be an option.
Your repayments will still include interest, as they would with long-term borrowing, and you will often find the interest rates are higher when compared with longer loans. However, if you only need to borrow a small amount of money, and you want to repay it quickly, then a short term loan is an option to consider.
Morses Club could help when you face unexpected expenses or bills. We offer short term cash loans between £100 and £1,500, with repayment terms of 22, 34 or 53 weeks depending on the amount you borrow.
How do Morses Club short term loans work?
Morses Club short term loans are designed to be as simple as possible. You can choose how much you want to borrow and how long you'll need to pay it back, to get a repayment plan that works for you.
Once you've chosen a loan period, you'll be able to see your fixed interest rate, the amount you'll pay for each repayment, and the final overall cost. With no hidden or extra charges along the way, you'll know exactly how much you need to repay from the start.
Loan periods start at 22 weeks, with a 34 week option also available and a further 53 week loan option for existing customers. If you're accepted for one of our short term loans, your money will be delivered to your door, and your local agent will collect repayments from you in person.
The table below shows some examples of the different loan periods available, their weekly payments and the overall cost. You'll be able to decide the most suitable arrangement with your local agent when you apply.
|Term||Interest rate||Loan amount||APR||Payments||Total Repayment|
How do I apply for a Morses Club short term loan?
Our loans are designed to be straightforward, so we've created a simple online application process that takes just a couple of minutes to complete. You'll receive a quick initial decision on your application, and then your local agent will arrange to visit you at your home. They'll go through the full application process with you and conduct an affordability assessment to try make sure the repayments are affordable.
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Short term loan FAQs
Can I get a short term loan with a bad credit history?
Morses Club accepts applications from people with all types of financial circumstances, including those with CCJs, mortgage arrears and bad credit scores. Even if you've been turned down by other lenders, you may still be eligible for one of our loans. A bad credit history doesn't necessarily mean you won't be approved. Every Morses Club loan application is considered individually.
If you've found searching for short term bad credit loans stressful in the past, don't lose heart. We give you a decision on your initial application within minutes, and if your application is successful, you could receive your money within days of applying.
How do short term loans affect my credit rating?
A short term loan from Morses Club will be displayed on your credit file for other lenders to see. If you make your repayments in full and on time, a Morses Club loan shouldn't have a negative impact on your credit file. Other short term lenders may use different criteria to calculate your short term loan eligibility, so check with the individual lenders if you are worried about your credit record.
How do I choose a short term loan provider?
If you're considering a short term loan, it's important to check that your potential provider is authorised and registered with the Financial Conduct Authority (FCA). You can easily find this information online. The FCA regulates the financial services industry and ensures that lenders remain open and honest about their products.
Before agreeing to any short loan, make sure you understand the repayment terms, APR, interest rates and any additional charges that apply. If you are unsure about anything, ask the lender to explain it to you. Otherwise, you may take on a loan that is unaffordable or unsuitable.
When applying for a short term loan with Morses Club, the APR, interests and monthly repayments are calculated before you submit your application. There are no hidden fees, and you'll be aware of how much you need to repay each week and in total. This helps you to determine whether your repayments are affordable before you agree to your loan.
Morses Club is a responsible lender, and our loans are designed with our customers in mind. We know in life the unexpected can happen, and that's why we don't charge any missed or late payment fees. Plus, our interest rates are fixed, so the amount you pay back will never change.
Will I qualify for a short term loan?
To be eligible for a Morses Club loan, you should meet the following criteria:
- Be over the age of 18.
- Be a resident of the UK.
- Have a regular income
- Not have been declared bankrupt in the last six years.
- Not have applied for a Sequestration, had a Debt Relief Order (DRO) or Individual Voluntary Agreement (IVA) in the last six years.
- Live in the same area as a Morses Club branch
Our online loan application is simple and only takes a few minutes to complete, and you'll know if you've been initially approved within minutes.
What can I use short term loans for?
A short term loan can be used to cover unexpected costs such as a car or boiler breakdown, medical bills, or a sudden change in income.
They can be a good option if you only want to borrow a small amount of money and you have a regular income to meet the repayments. However, short term loans should not be used as a long-term borrowing solution, as interest rates are much higher than on traditional personal loans.
How long is a short term loan?
Short loans usually refer to loans that can be paid back in around a year or less. Morses Club short term loans can be taken over 22, 34 or 53 weeks, depending on how much you borrow and whether you are a new or existing customer.
What is the interest rate on short term loans?
When taking out new short term loans, you'll notice the interest rates are higher than traditional personal loans. The interest rate on short term loans varies from lender to lender, but in the UK, lenders must charge interest in line with FCA regulations.
If you choose Morses Club as your short term loan provider, you can expect to pay an interest rate of between 54% - 85.4%. And unlike other lenders, Morses Club doesn't charge late payment fees. That means that if you are unable to make a monthly repayment on time, you'll never be charged any more than the initial amount you agreed.
Are short term loans safe?
Short term loans can provide a good solution if you need to cover an unexpected cost and you can afford to repay the amount borrowed with interest. You should only consider a short term loan if you have a regular income and confident you can make the repayments.
What are the benefits of short term loans?
Short term loans shouldn't be considered a long term financial solution, but they offer several benefits if used appropriately:
- They can be a quick way of getting money for emergencies
- You can pay your short term loan back in manageable instalments
- They have a relatively short repayment period, compared to some other types of personal loans.
- You don't need a guarantor for a short term loan
Short term loans can even help build up your credit rating if you make your repayments in full and on time.
What's the difference between short term loans and payday loans?
The difference between short term loans and payday loans is the number of repayments you will make. Payday loans, as the name suggests, are paid back in one or two lump sums after you receive your next wage or salary. Whereas, with a short term loan you make smaller repayments over a longer period of time.
If you're deciding between a short term loan or a payday loan, you'll need to evaluate your financial circumstances. If you're confident that you can repay the full loan amount, the next time you are paid, you may want to consider a payday loan. However, if you wish to pay back the loan in manageable weekly instalments that fit around your lifestyle and other outgoings, a short term loan may be a better option.
Existing customers can borrow up to £1500 subject to approval.