How do immediate short term loans work?

Immediate short term loans in the UK are also called payday loans, quick loans or emergency loans. Regardless of the name used for short term loans they work the same way.

Generally it is possible to apply for an immediate short term loan on the internet. Some payday lenders also operate on the high street. A good lender of short term loans will allow you to apply with a simple, paperless process over the internet. The process should be 100% secure. The Quick Loan Shop allows you to fill in the application entirely online. There is no mountain of paperwork to trawl through, just a simple, quick online form to complete. Once you have agreed to the terms and conditions your application will be considered for approval. If your application is approved TQLS will try to deposit the money in your bank account the same day.

Your next payday is when your short term loan must be paid back

Payday loans are loans which are unsecured and have to be paid back on the next payday. A good payday will have no hidden fees. There should be:

  • No application fee
  • No faster payments fee (subject to your bank account supporting Faster Payments)
  • No monthly account maintenance fees

It is not normal for a payday lender to allow extensions. Short term loans are not meant to be long term loans. Some lenders will allow extensions on loans but there will be a charge and you will have to discuss with the lender. Always keep in contact with your lender if you anticipate problems with paying back your short term loan. Emergencies happen and if you have a good relationship with your lender you should be able to work something out.

Most financial lenders do not give unsecured loans. The fact that payday lenders give unsecured loans makes them vulnerable. Respect the fact that you are able to find someone to trust you enough to give you a loan without any security. Pay your loan back on time and in this way, when you have another emergency, you will know where to turn. We never know when we will need money in a hurry. It is not always for family and friends to help us in our time of need. If we cannot get an unsecured loan for family or friends and we cannot get a quick unsecured loan from other financial institutions such as banks, the payday lender can be a valuable source.