What is a Short-Term Loan?

The Financial Conduct Authority (FCA), who are the regulator for financial firms and markets in the UK, classify a short-term loan as a credit agreement where the;

  • APR is 100% of the loan amount or more
  • Duration of the Loan agreement is 12 months or less
  • Loan is not secured
  • Loan is not provided by a “Community Finance Organisation

What happens when you apply for a short-term loan?

As the emphasis is on speed and convenience in the High Cost Short-Term Credit industry, most short-term loans can be applied for online.

The decision is usually made the same day with the funds being transferred to the applicants’ bank account the same day.

Although the costs can be higher than a more long-term credit agreement, the speed of the process can make it ideal if you have an unexpected bill like an expensive car repair or home improvement.

All our applications are underwritten with affordability in mind rather than your credit score or history. This means that people who may have had an adverse credit history can still apply.

The various checks performed by our underwriting team on each and every application means we will never automatically fund an application without a human reviewing it.

All applications for a QuidMarket short-term loan go through a number of checks, including an affordability assessment, anti-money laundering and anti-fraud checks.

Comparing Loan Options

As the emphasis is on speed and convenience in the High-Cost Short-Term Credit industry, most short-term loans can be applied for online.

The decision is usually made the same day with the funds being transferred to the applicants’ bank account the same day.

Although the costs can be higher than a more long-term credit agreement, the speed of the process can make it ideal if you have an unexpected bill like an expensive car repair or home improvement.

All our applications are underwritten with affordability in mind rather than your credit score or history. This means that people who may have had an adverse credit history can still apply.

The various checks performed by our underwriting team on each and every application means we will never automatically fund an application without a human reviewing it.

All applications for a QuidMarket short-term loan go through a number of checks, including an affordability assessment, anti-money laundering and anti-fraud checks.

The Money Advice Service website have written this article about how to use price comparison websites and what to look for.

How to decide if a short-term loan is right for you?

If you do decide to apply for High-Cost Short-Term credit there are many things to consider.

As Short-Term / Alternative lenders have to display their interest charges as an APR (Annual Percentage Rate) this can sometimes be misleading and confusing for customers.

Because a short-term loan with QuidMarket is only designed to last a short amount of time the APR does not reflect the true cost of the credit.

It is a bit like advertising a hotel room with a yearly rate when customers are wanting to book it for a long weekend!

To get a more accurate idea of what you will be paying you will need to pay more attention to the Total Amount Repayable rather than the APR.

Short-Term credit is often unsecured which means you will not have to put up some collateral against the loan should you not be able to make the repayments due.

Unsecured Credit is a higher risk for the lender and so again, the costs may be higher – consider using a secured option that may give you more flexibility and be more affordable.

How does QuidMarket compare?

Take a look at how a QuidMarket loan compares to some other Short-Term High Cost credit providers – all the information below was taken directly from www.money.co.uk and the various companies’ own websites on 11.03/2020 – QuidMarket is not responsible for any changes/inaccuracies that may be displayed on external websites.

The Total Amount Repayable is based on £500 over 5 months

Company Name Amounts Offered Available Terms Representative APR Total Amount Repayable
Lending Stream £50 – £1,500 6 Months 1333% APR £916
Satsuma £100 – £1,000 3 – 12 months 535% APR £880
Sunny £100 – £2,500 1 – 14 months 1266% APR £910
My Jar £100 – £3,600 3 / 6 / 12 months 1081% APR £890
Money Boat £200 – £1,500 6 months 939% APR £806
QUIDMARKET £300 – £1,500 3 – 6 months 1301% APR £911

Use the sliders on the QuidMarket home page to see how the different loan amounts and duration can affect the monthly repayments and the Total Amounbt Repayable.

So, the main thing to remember before entering into a credit agreement is to make sure you have looked around for the best options available to you that fit your needs – some companies offer various amounts/loan terms – as with any application for credit, only apply for the amount you need and make sure the Total Amount Repayable is affordable for you.

Warning: Late repayment can cause you, serious money problems. For help, visit: moneyadviceservice.org.uk


QuidMarket is fully licensed and authorised by the Financial Conduct Authority. You can view their register here.

Check out our reviews on Trustpilot to see what other customers are saying.

How much do you need?

£500.00
£300 £1500

For how long?

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Month 1

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Month 2

£

Month 3

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Month 4

£

Month 5

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Month 6

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This is for illustration purposes only. Your repayment schedule will be confirmed during your application

*All applications are subject to affordability checks*

Representative example: Borrow £300 for 3 months / Interest payable £154.37 / Total amount payable: £454.37 in 3 instalments / 3 payments of £151.46 / Representative 1301% APR / Interest rate 292% per annum (fixed) / Maximum APR 1625.5%

Compare short term loans on Clear and Fair

As a new customer the minimum repayment period is 3 months and the maximum is 6 months. Additional options may be available to you as a repeat customer.