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Short-term loans can be great for getting you out of tight financial situations – maybe you need a quick cash injection before your next payday, or you’ve been hit by an unexpected garage repair bill. With loan terms ranging from 3 to 24 months, short-term loans offer plenty of flexibility.

You may believe that if you have bad credit history or you are unemployed that you may not meet the criteria for a long-term loan.

Short-term loans are not only tailored to those who need money in a hurry, but also to those who don’t tend to qualify for longer-term loan deals.


Types of short-term loan

Lenders specialising in short-term loans have ‘profiles’ – a profile is the type of person they want to lend to and welcome onboard as a customer.

Moneypod’s job, as a broker, is to match up your circumstances and information to the lenders where there’s a good fit between you, before your application is submitted to them. We do this for free – you never pay us.

Some short-term lenders specialise in lending money to students, some to the unemployed, and others to the retired or elderly.

Moneypod will find you a Financial Conduct Authority approved (FCA) lender whose profile you are closest to. If we’re unsuccessful in finding you a short-term loan, we can refer your case onto one of our partner brokers.

They may charge a brokering fee. You are under no obligation to accept a loan offer where there is a fee charged by either a broker or a lender.


Am I OK if… my credit is bad?

You can’t get a loan without being credit checked. However, most short-term loans are more concerned about finding out who you are today and will need information about your income, outgoings, and personal situation.

Credit checks come in two forms: soft, and full.

A soft credit check is what Moneypod performs on your details to get a snapshot of your situation. The information a soft credit check tells us about you means that we are able to match you up with a lender who wants to work with you, even if your credit score is less than perfect.

A soft credit search won’t make a difference to your credit score. Any other company looking at your credit file will not be able to see that a soft credit search has been made.

After we pass your application onto the chosen lender, they will perform a full credit check. This looks at your credit rating in more detail and will leave a ‘footprint’ on your credit history.

That’s why we recommend using Moneypod. We perform the soft searches for you so that you don’t have to leave a trail of rejected hard searches on your credit history by approaching lenders direct.

As stated above, short-term lenders are more likely to be interested in your current situation, not in your financial status three years ago. This means that they’ll be more understanding of people with a poor credit score.


Am I OK if… I am not a UK citizen?

According to FCA legislation, loans cannot be offered to non-UK citizens.


Am I OK if… I am under 18?

Because a loan agreement involves entering into a legal and binding contract, it cannot be offered to those under the age of 18.


Can I get a short term loan while I’m unemployed?

There’s a widespread misperception that people who are unemployed or who are receiving benefits can’t get a loan. However, there are definitely options available to you if you can provide proof of the following:

  • Salary payments from your employer (if you have one)
  • Self-employed income
  • Any benefits or pensions you receive
  • Other sources of income you may have, such as regular payments from a partner

Each short loan provider will have their own criteria as to what they will accept so leave your details with Moneypod so we can match you to those criteria.

The types of short-term loan available to those of you who are currently looking for work fit into one of two categories: ‘secured’ loans, or ‘raised interest’ loans.

Secured loans involve you using your assets as collateral (like your home, a car, jewellery, and so on) so that your lender has something they can sell to make their money back if you can’t repay the loan.

Raised interest loans involve accepting a slightly higher rate of interest on your short-term loan to make up for the fact that loaning to you could be considered as being a little bit riskier.



How my income affects eligibility?

To apply for these types of loan, you will likely need to:

  • Be 18 years of age or older
  • Receive at least £400 each month from your salary or benefit allowance
  • Have lived in the UK for at least 6 months


Am I OK if… I do not have a bank account?

Getting your loan delivered to you needs a bank account to receive it. At the same time, your lender needs a bank account so that they can collect the repayments.

So, regretfully, we can not process a loan request from you if you don’t have a bank account.


Moneypod – information we need from you

Moneypod uses your information to determine which lender’s profile you match the best. We’ll need:

  • Personal details to verify your identity, including your name, date of birth, and number of dependents
  • Contact details, such as your telephone number and email address
  • Your residential address
  • Your employment status
  • Your income
  • Your expenses
  • Transfer details – these are used to transfer funds into your bank account.

Information you enter in to our website (and those of our partners) is SSL-secured, meaning your sensitive credit information will not be passed on. Please read our Privacy Policy to further understand how we use your information.

If you feel confident that you would be able to pay back a short-term loan successfully and meet all the criteria we’ve described in this article, please click for our short-term loan application.