Short term loan options?

turbobob

Hi there.

I am wondering what the options are for a short term loan (over about 3 months). The situation is I have a lump sum due to me in approx March (maturing savings scheme) but may need to borrow about £3k in the meantime. The lump sum will definately be enough to clear this and more.

One option I guess is a Credit Card cash advance. But these are pretty expensive, but on the other hand it is over just a few months. What other options are available?

Thanks for any advice

Rafter

Don't get too hung up on the interest rate - as you say it is only for a short period so each 1% difference on a £3000 loan is only going to cost you £7.50 in interest.

Your best option would seem to be an unsecured loan with no repayment penalties. Sometimes described as a flexible loan.

You may need to borrow £5000+ to secure a decent interest rate though, even if you then repay £2000 immediately.

Not many about these days - the AA seem to have one at 9.9% - make sure you select the one without penalty though.

R.

jonesMUFCforever

A cash advance on a credit card is likely to cost about 30% APR, even short term that is expensive.
Can you not get an overdraft until your savings mature?

turbobob

Thanks. I think an arranged overdraft sounds like the more hassle free way to do it. Do they generally use similar lending criteria to a loan or are they going to require evidence that I'm going to have this money available at a certain time in the future?

Cheers :cool:

jonesMUFCforever

turbobob wrote: »

Thanks. I think an arranged overdraft sounds like the more hassle free way to do it. Do they generally use similar lending criteria to a loan or are they going to require evidence that I'm going to have this money available at a certain time in the future?

Cheers :cool:

If you have a good credit score with your bank then you showing something to show that you have funds to pay it off in March would do no harm.
They might be able to put the limit on immediately or it might have to be referred to a lending department.