When it comes to picking a loan, there are a host of decisions to make, to help decide what option suits you best. The first decision, however, should be to ask yourself how much do I need to borrow? This will determine whether a short-term loan, usually for smaller amounts or a long-term loan, usually used for larger amounts would be better for you.
In this blog post, we take a look at long-term loans and why they could be more manageable than short-term loans.
What is a long-term loan?
A long-term loan can be taken out for any reason, from unexpected MOT costs for your car, to some extra money for home repairs. This kind of loan sees you borrow a larger amount of money to be repaid over the course of a longer time period. With the repayments stretched over a longer period, you’ll have more time to pay it back. Our long-term loans come with repayment periods of 18-48 months.
As we are a responsible lender, we conduct credit and affordability checks as part of each loan application, to help ensure the loan is affordable. We’ll use all your information to decide whether a long-term loan is right for you.
Why a long-term loan can be more manageable
Often people think due to the longer commitment of a long-term loan, a short-term option would be better. When in fact, this type of loan can be more manageable than their shorter counterparts and normally have a lower interest rate; you may however end up paying more in interest depending on the duration of the loan.
Borrowing a larger amount of money can also prove to be very helpful if you have a big expense to pay, and once the money is in your bank account, the long-term structure of repayments means that you know exactly how much you need to repay every month. Depending on how much you borrow the repayment amount could be slightly lower too, making budgeting each month easier. Right from the start you will know how much you must pay each month, maximising loan-based transparency.
In comparison with short term loans
While a long-term loan could be the right choice for you, a short-term loan is still worth looking into. They are less of a commitment, with the money paid off in just a few months. Short-term loans are also more suitable, if you’re only wanting to borrow a smaller amount of money.
Depending on your needs and requirements, there’s a loan out there for you, and the best way to find out what works is through research, if you would like some help check out our loan guides. For more information on what loans we offer at Dot Dot Loans, check out our selection of loans on our website.