Short-term loans information hub

We’ve answered some of the most common and important questions around the best short-term loans and what to ask before taking one out. Read through these before hitting apply and feel confident that you are taking on the right loan for you.

  • A ‘short-term loan’ is, as its name suggests, a loan which has a relatively short repayment period. This can range from around as little as a week to a number of months depending on the lender. 

    This is considered short-term compared to traditional personal loans which usually have a repayment period of a year or longer. Sunny offers short-term loans that can be paid over six to seven months. 

  • Applying for a short-term loan will initially dent your credit rating but as long as you repay it on time and in full as agreed, then this could build your credit history and may help your credit rating to improve over time.  

    It’s worth noting that if you choose Sunny, we offer something called soft search***. This allows us to take a look at your credit report and determine your likelihood of being accepted for one our loans but it does not leave a mark on your credit report. 

    If you’re looking to get a short term loan, we’ve created this guide detailing why you might choose one, what they involve and why Sunny may be the best fit for you and your circumstances. 

  • This depends entirely on the lender. The amount of interest you pay is also determined by how much you borrow and how long your repayment period is. Currently, Sunny charge 0.8% interest per day, in line with FCA regulations on the cost of short-term credit.

  • A short-term loan should only be used as a solution for a problem that needs resolving fast. This could be a life emergency such as needing to make last-minute travel arrangements in the event of a family or work emergency or to pay for something in the house that needs urgently fixing. It should not be used as a long-term solution to financial needs. If you need any help with your finances, we recommend you seek impartial debt advice from a not-for-profit organisation like Stepchange the Money Advice Service.

  • We offer an instant decision on your application and our credit checks help us decide whether to offer you your emergency loan. If your credit score is low or you have a limited credit history this can affect your chances of being accepted. Take a look at our eligibility page before making an application and read about bad credit and short-term loans in our in-depth guide here

  • You can get a loan with bad credit, however, you will find that the amount you are able to borrow may be affected by your credit score and history. We have more information on bad credit and loans here, in our detailed guide. 

  • Your credit score is a number that represents your financial history and takes into account information such as court records, electoral roll information, the number of other searches on your file, addresses you’re linked to, bank accounts, loans, mortgages, utilities and mobile phone contracts. The credit scores provided by Credit Reference Agencies are a good indicator of how a lender will view your application so it’s worth checking this before you apply. Even if some of your history is unfavourable and you have a poor credit score, our short-term loans could still be an option for some borrowers. 

  • Applying for a loan with Sunny is quick and easy. You apply online by providing us with details such as your name and date of birth, your address, and your bank and employment details, and income and expenditure information. We will then carry out a credit and affordability check. These checks are in place to ensure we aren’t lending someone more than they can comfortably afford to repay. They only take a matter of minutes to complete online.

More information on short-term loans

Because the duration of one of these loans is considerably less than other types of loan, the amounts borrowed are typically relatively small. These generally range from £100 to £1,000, to help borrowers quickly get out of a temporary financial tight spot.

As with any loan, it’s important to research what you’re getting into thoroughly before making an application. Most importantly, never borrow more money than you aren’t fully confident you’ll be able to pay back. To avoid financial difficulty and debt building up, try to avoid taking out loans on a regular basis. Borrowing money should be considered only when completely necessary. 

Examples of short-term loans

Before you take out a short-term loan, it’s important you look into how the costs break down to see how much interest you will be paying and what the total amount repayable will be. To help, we’ve created this sliding calculator. Select the amount you want to borrow, and how long for, and see a breakdown of how much this will cost on a monthly basis to pay back, as well as how the length of time you wish to repay over affects the total cost. Explore the different options available using the calculator below before you apply for a short-term loan.

Monthly rate
%
Based on a
30 day month
Loan term
Months
The loan term is fixed but you can repay early at any time
The loan term is fixed but you can repay early at any time
Representative example
£ for months
%pa (fixed)
£
£
% APR

How Sunny can help?

At Sunny, our short-term loans come with a number of benefits that can make repaying what you’ve borrowed simple and stress-free. Take a look at the details of our features below.

  • When you apply for a short-term loan you can get an instant decision and the emergency money you need transferred into your bank account in just 15 minutes, if approved.

  • We don’t charge any fees. This means you won’t need to factor in any additional costs such as admin or application fees and we don’t issue a charge if you are late making a repayment.

  • We understand that circumstances change, so if you realise you don’t need your loan simply call to pay it back in full within five days* and you won’t pay any interest.

Comments from Sunny customers

We love to receive feedback from our customers and we’ve had some great scores and testimonials shared on TrustPilot**. Check these out below to decide if Sunny is the right lender for you when you need a short-term loan.

Got everything you need?

You can find more information about general money management as well as tips on how to get the most out of your money, in our digital magazine – Good Vibes.

If you have any additional questions regarding our short-term loans or the application process, please visit our frequently asked questions section. Alternatively, you can contact us using our online live chat, Facebook, Twitter or email and we’ll be happy to help. For now, if you feel confident one of these loans is right for you, simply hit the apply now button below.

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Looking for alternative lending options?

Whether you have bad credit and are wondering if one of these loans is right for you or simply want to know more about cash loans, click the links below to our in-depth guides to find out more.