Short term loans are the ones that are taken for a time period of less than a year. These loans are often employed for immediate needs and mostly contain consumer based loans such as the use of credit cards and personal line of credits. There are many options that you can use for obtaining these loan elements. Here, we present some of the best available options and later discuss the best uses of the short term loans garnered through these resources.

Options for Short Term Loans

Among the several available ways of funding your short term needs, we present you with a few modern solutions that you can employ for both your personal as well as business requirements. These are the short term loans that work perfectly for a variety of needs.

Low Interest Credit Card Loans

There are many credit card companies that offer products that are interest free for the first year. Some cards allow for free balance transfers, but you need to select cards that offer zero or extremely low credit for the first year of use. You should select an interest free card with the credit limit that you require to take the desired amount of money.

Once you have your credit card, you need to make that essential purchase immediately. You now have a complete year to pay the amount back in easy instalments without having to worry about any interest. You should always ideally plan to pay the loan back in the interest free period.

If you find that you will not be able to pay the balance in the required time, then you should always transfer the remaining balance to a low interest credit card. A balance transfer is usually cheaper during the first year and will save you from the high interest that applies to your low interest card from the second year onwards.

This is a useful technique for obtaining unsecured short term loans. You can also remain safe from interest in this manner and may just have to pay the fees required for the creation and maintenance of the interest free credit card.

Flexible Loans

Flexible loans are also a great way to use as short term loans because of their particular conditions. These loans are designed to be paid in a shorter time. They provide money just like ordinary loans and are designed to be returned as a onetime payment including the implied interest.

They can be used to borrow as much as around Fifteen Thousand Pounds but the actual maximum amount depends on the previous credit history of the applicant. The usual interest rate for these loans varies a great deal from five percent to a maximum of around eighteen percent. The rate usually depends on the length of the loan.

The interesting thing in these loans is that the interest only applies for the period that you take to return the loan. This is an excellent avenue of obtaining short term loans, especially if you are sure that you will have enough finances to easily return the borrowed amount within the stipulated time period.  You do not have to pay any fee when returning the complete amount early with flexible loans.


There are many banks that allow you to operate an account that gives you the facility of using overdrafts. The more interesting part is that these overdrafts are available for free when opening new accounts for a short period of time. If you wish to return the amount within a few months, then it is an excellent option to use overdrafts as short term loans.

These loans are also available against zero percent interest, but most banks have a maximum grace period of twelve months for their overdrafts. This service is especially suited for people who do not want to use overdrafts as a habit and are simply looking for a one time short term loan option. You can usually get up to 5,000 Pounds as an overdraft and there are many banks that support and provide this service.

You need to remember though that you cannot use this service, if you have already taken an overdraft from your bank account. Still, the overdraft charges are usually smaller even after the first year and quite manageable if you require the money for an important need. For common use though, you should consider it as a onetime option and return it within a year.

Uses of Short Term Loans

There are many ways that you can employ short term loans. They should ideally be used when you are sure that you can return them within a period of twelve months. Here are a few common uses of these loans.

Financing a Business

Small business owners can use these options for procuring the finances that they require to make the initial purchases for a business venture. They are excellent for quick returning businesses that mature within a few months and start to earn revenues before a year has passed. The owners can then easily return the loan from the proceeds of the business.

Home Repairs

Your home repairs will not wait for you to have the required amount in the savings account. It is best to perform complete repairs in one go by taking the extra amount as a short term loan. This will increase the value of your house as well as improve your living experience. You can then easily return the borrowed money through monthly instalments using any of the above mentioned methods.

Improving Cash Flow

Small business owners are sometimes short of money because of a delay in receiving their payments from the customers while they have to pay their service providers upfront. Short term loans work perfectly for such businesses and owners can also use them one time to establish a fund that holds some extra cash. They can then gradually return the loan from their sales, but keep the borrowed amount safe for a future need.

There are many avenues that can be used for getting short term loans. You can also opt ofr a payday loan though, if it suits your needs. For this, it is best to compare the different offers on the Payday Loans section of Quiddicompare first. You can then select the best option by carefully examining the different lenders.


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