Short term loans from £50 to £5,000
When you need to borrow money for a few months rather than a few years, a short term loan can be the right fit. Whether it’s an unexpected bill, a car repair, or a gap between paydays, short term loans in the UK give you access to funds quickly, with a clear repayment plan you can manage.
At New Horizons, we search over 50 FCA-authorised lenders to help find you a short term loan that matches your circumstances. If matched, you’ll see your options in minutes, with no impact on your credit score and no fees from us. Ever.
We’re a credit broker, not a lender. That means instead of offering you a single product from a single company, we compare offers from a wide panel of regulated lenders and let you choose the one that works best. One application, dozens of options.
How short term loans work at New Horizons
Applying for a short term loan through New Horizons is straightforward. Our Soft Credit Match technology does the hard work, searching across our panel to help find lenders likely to approve you, without leaving any mark on your credit file.
Here’s how the process works:
- Complete our short online form with your personal and financial details
- We run a Soft Credit Match across our panel of over 50 FCA-authorised lenders
- If matched, you see your loan options instantly, with no impact on your credit score
- Choose the offer that works for you, or walk away with no obligation
- If you accept an offer, the lender completes a full affordability check
- Once approved, funds could be in your account within 15 minutes
The entire process takes minutes, and you’re under no obligation to accept any offer you receive. If nothing looks right, simply close the page. No pressure, no follow-up calls, no hassle.
Our same day loans page has more details on how quickly you could receive funds once approved.
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Who can apply for a short term loan?
Short term loans through New Horizons are available to most UK adults. The basic eligibility requirements are simple:
- Be at least 18 years old
- Be a UK resident
- Have a regular source of income
- Have a UK bank account
- Provide accurate personal information
You don’t need a perfect credit score to apply. We work with lenders who consider a range of credit histories, including people who’ve experienced missed payments, defaults, or CCJs. What matters most to our lender panel is your current affordability, not just your past.
If you’ve been turned down for credit before, that doesn’t mean you’ll be turned down with us. Different lenders have different criteria, and our panel includes specialists in loans for bad credit who look beyond your credit score.
Understanding the costs of short term loans
Transparency about costs is something we take seriously. Short term loans typically carry higher interest rates than traditional bank loans because they’re smaller amounts borrowed over shorter periods. Knowing exactly what you’ll pay back before you commit is essential.
Our representative APR is 49.9%, which is significantly lower than many short term loan providers in the UK. The rate you’re offered will depend on your individual circumstances, with rates across our lender panel ranging from 9.3% APR to a maximum of 1,721% APR.
Here’s a representative example of what a short term loan could cost:
- Amount of credit: £1,200 for 18 months at £95.44 per month
- Total amount repayable: £1,717.83
- Interest: £517.83
- Interest rate: 49% pa (fixed)
- Representative 49.9% APR
Because we search over 50 lenders, you’re more likely to find a competitive rate than if you applied to a single direct lender. New Horizons never charges any fees to customers. Our service is completely free to you. We’re paid by lenders, never by borrowers.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Why choose New Horizons for short term loans?
The short term loans market is crowded, and not every provider operates with the same standards. Here’s what sets New Horizons apart from other brokers and direct lenders.
We search over 50 FCA-authorised lenders in a single application, so you don’t have to apply to each one separately. Most direct lenders can only offer their own products. As a broker, we give you access to a much wider range of options, increasing your chances of finding a loan that fits.
Our Soft Credit Match technology means your initial search is completely invisible to other lenders. It won’t affect your credit score, and only you can see it on your credit report. This is a genuine advantage over lenders who run hard credit checks from the start.
We also stand behind our Customer Promise, which we call the Three Nevers:
- We never sell your data
- We never contact you to sell other products
- We never give consent to other companies to contact you
We never sell your data. We never spam you. We never share your details without permission. In an industry where data selling and aggressive marketing have been widespread problems, our Customer Promise is a commitment we’re proud of.
We’re also Feefo Gold rated, which means consistently positive feedback from verified customers. Established in 2017, New Horizons was built after the worst practices of the loans industry became widely condemned. Ethical practice is in our DNA, not something we retrofitted.
Short term loans vs payday loans
People often search for cash loans or short term payday loans without fully understanding the differences. While both serve a similar purpose, there are important distinctions worth knowing.
Traditional payday loans were designed to be repaid in full on your next payday, usually within a few weeks. Short term loans, by contrast, are repaid in monthly instalments over a longer period, making them more manageable for most borrowers.
Through New Horizons, you could borrow from £50 to £5,000 and repay over 3 to 36 months. This flexibility means you can choose a repayment schedule that fits your budget, rather than being forced to repay everything at once.
Monthly instalments spread the cost and make it easier to budget. You’ll know exactly what you’re paying each month, with no surprises. If you’re looking for something you can repay over a shorter period, our cash advance loans page explains more about your options.
What can you use a short term loan for?
Short term loans are designed for situations where you need access to funds quickly but don’t want to commit to years of repayments. Common reasons people apply include:
- Unexpected car repairs or MOT costs
- Emergency home repairs such as a broken boiler or roof leak
- Vet bills or medical expenses
- Covering a gap between paydays
- Essential household appliance replacements
- Moving costs or rental deposits
If you’re facing an urgent expense, our emergency loans page covers how quickly you could access funds. For smaller amounts, a £500 loan or £1,000 loan might be exactly what you need.
Whatever the reason, only borrow what you can comfortably afford to repay. A short term loan should solve a problem, not create a new one.
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A short term loan isn’t always the right answer. Before you apply, it’s worth considering whether other options might work better for your situation.
Credit unions offer affordable loans to their members, often at much lower interest rates than commercial lenders. You’ll need to be a member first, which can take time, but they’re worth exploring for future borrowing needs.
Payment plans are another option. If you owe money to a specific company, such as a utility provider or mechanic, ask if they offer a payment plan. Many businesses will let you spread the cost interest-free if you explain your situation.
Free debt advice should always be your first step if you’re struggling with multiple debts. Organisations like MoneyHelper, StepChange, and Citizens Advice provide free, impartial guidance and can help you work out the best next step.
If you’ve explored your options and a short term loan is the right choice, we’re here to help you find the best match from our panel of over 50 FCA-authorised lenders.
How to improve your chances of approval
While we can’t guarantee approval (that’s the lender’s decision), there are practical steps you can take to strengthen your application.
- Check your credit file for errors before applying, as mistakes can lower your score unnecessarily
- Make sure you’re on the electoral register at your current address
- Only borrow what you can realistically afford to repay each month
- Provide accurate, up-to-date information on your application
- Close any unused credit accounts that might affect your overall credit picture
Our guide on how to improve your credit score covers more steps you can take. And if you’ve been turned down for credit before, our tips on how to get a loan accepted could help.
Remember, checking your eligibility with New Horizons uses a soft search that won’t affect your credit score. There’s no risk in seeing what’s available to you.
Short term loans for bad credit
Past credit problems don’t define your future. If you’ve had a default, CCJ, missed payments, or simply haven’t built up much of a credit history, you may still have options.
We work with lenders who look at your current income and circumstances, not just your credit score. Our panel includes specialists who consider the whole picture when making their decisions.
Because our Soft Credit Match searches over 50 lenders at once, you’re more likely to find a match than if you applied to individual lenders one at a time. Each application to a single lender leaves a hard search on your credit file, which can make things worse. With us, one soft search covers the entire panel.
For more information about borrowing with a less-than-perfect credit history, visit our dedicated bad credit loans page.
Frequently asked questions about short term loans
What is a short term loan?
A short term loan is a type of borrowing designed to be repaid over a relatively short period, typically between 3 and 36 months. These loans are usually unsecured, meaning you don’t need to put up your home or any other asset as security. Through New Horizons, you could borrow from £50 to £5,000.
How quickly can I get a short term loan?
You could receive an instant decision on your eligibility and have funds in your account within 15 minutes of approval. The exact time depends on the lender and your bank’s processing times. Our online application takes around three minutes to complete and is available 24 hours a day, seven days a week.
Will applying for a short term loan affect my credit score?
No. Your initial eligibility check with New Horizons uses a soft search that won’t appear on your credit file. Other lenders can’t see it, and it won’t affect your score. A hard credit check only happens if you choose to accept a loan offer from a lender.
Can I get a short term loan with bad credit?
Yes, you can apply regardless of your credit history. We work with lenders who consider a range of credit profiles, including people with defaults, CCJs, and missed payments. Your current affordability is the most important factor for many of our partner lenders.
How much does a short term loan cost?
Our representative APR is 49.9%. The actual rate you’re offered depends on your circumstances, with rates across our panel ranging from 9.3% APR to a maximum of 1,721% APR. You’ll see the exact cost of any offer before you accept it, so there are no surprises.
Are there any fees for using New Horizons?
No. New Horizons does not charge customers a fee for using its services. Our service is completely free to you. We’re paid by lenders when a loan is successfully arranged, never by borrowers.
What’s the difference between a broker and a direct lender?
A broker like New Horizons searches multiple lenders to help you find your best match, while a direct lender can only offer their own products. Using a broker gives you access to a wider range of options from a single application, which can save time and increase your chances of finding a competitive offer.
How do I repay a short term loan?
You’ll repay in fixed monthly instalments over your chosen term, typically by direct debit. The amount and schedule will be agreed with your lender before you accept the loan. Repayment terms range from 3 to 36 months, so you can choose a schedule that fits your budget.
What happens if I can’t make a repayment?
Contact your lender as soon as possible if you’re struggling with repayments. They may be able to arrange a payment plan or adjust your schedule. Ignoring the problem can lead to additional charges and a negative impact on your credit file. For free debt advice, visit MoneyHelper or contact StepChange.
Can I repay my short term loan early?
In most cases, yes. Many lenders on our panel allow early repayment, and some won’t charge you extra for doing so. Check the terms of your specific loan agreement for details. Repaying early can save you money on interest.
Is New Horizons regulated?
Yes. New Horizons Finance Ltd (Company No. 11757330, FCA reference: 834535) is an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority. All lenders on our panel are also FCA-authorised.
How is New Horizons different from other short term loan providers?
We search over 50 FCA-authorised lenders in a single soft search, charge no fees, and stand behind our Customer Promise to never sell your data, never spam you, and never share your details. With a representative APR of 49.9% and a Feefo Gold rating from verified customers, we offer a combination of competitive rates, choice, and trust that’s hard to match.
What do I need to apply?
You’ll need to be 18 or over, a UK resident, and have a regular income and UK bank account. The application form asks for basic personal and financial information. The whole process takes around three minutes.
Can I get a short term loan if I’m on benefits?
Yes, you may be eligible if you have a regular income from benefits. Some lenders on our panel accept benefit income as part of their affordability assessment. Visit our loans for people on benefits page for more details.
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