Short-term loans: QuidMarket

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QuidMarket launched in 2011 and has been offering short-term finance options for consumers who need quick access to cash ever since. Borrowers can decide how much they want to apply for, up to a maximum amount, and repay the balance in regular installments. Borrowing through short-term lenders can be an expensive option so make sure this is the best option for you and that you can afford the repayments before applying.

What kinds of loans does QuidMarket offer?

QuidMarket is a direct lender offering short-term installment loans and payday loans. Borrowers opting for a short-term loan can apply for between £300 and £1,000 for up to six months. Those applying for the first time will be limited to £600 and must repay over a minimum term of three months. However, whether you are actually offered the amount and terms you apply for will rely on the outcome of your credit and affordability checks.

 

What are QuidMarket’s lending criteria?

QuidMarket, like all responsible short-term lenders, will check you can afford the repayments before offering you a loan. They will ask you for information about your finances, your income and your employment status and will also check your credit score to ensure you’ve not run into problems with debt in the past.

 

As well as asking for details of your financial situation, QuidMarket will also check that you are eligible to take out the loan. In order to do so, you will need to be a UK resident with a mobile phone, email and bank account. You are also required to be over 23 and have a minimum monthly income.

Are QuidMarket short-term loans expensive?

Borrowing through a short-term loan provider is usually relatively expensive in terms of interest rates charged. This is because the loan term is very short and the risk to the lender is quite high. You can look for a lender’s annual percentage rate for a loan before applying, which will show you what a loan will cost you as a percentage of the total amount borrowed, if taken out for a full year, including charges, fees and interest.

 

Who might want to take out a QuidMarket short-term loan?

Short-term loans, such as those QuidMarket offer, are usually used to cover essential unexpected costs that borrowers are unable to meet through their normal income or savings. For example, if your car breaks down and you don’t have the money in the bank to fix it, but you need it for work, a short-term loans could tide you over. It’s not a good idea to use short-term loans for day-to-day spending as they are often expensive.

Are there cheaper alternatives to short-term loans?

It may makes sense to find out if you are eligible for alternatives like a bank account overdraft or a low or zero-percent interest credit card as both of these options are sometimes cheaper than a short-term loan.

 

How are QuidMarket loans repaid?

QuidMarket takes repayments automatically on your pay day each month. If you find that you will struggle to meet a repayment, you could end up incurring penalties and/or extra interest rate charges. However, it’s always a good idea to be open and honest with your lender as they are duty bound to try to help struggling borrowers to their repayments and avoid further financial distress.

 

Can I apply for a QuidMarket loan if I have a poor credit score?

QuidMarket is a responsible lender and, therefore, does carry out credit checks on applicants to ensure that their credit score is high enough. You are unlikely to be accepted for a short-term loan from a provider like QuidMarket if you have CCJs on your recent record or have been declared bankrupt. 

 

Although you may struggle to secure a loan at a good rate if you have a poor credit record, you may be accepted if your employment and income information is strong enough, for example. However, if you apply for loans and are turned down, this could further damage your credit file.

 

What should I do if I am struggling to make my repayments to QuidMarket?

Responsible lenders like QuidMarket encourage borrowers experiencing difficulties to contact them right away to talk through the options for getting back on track. This may involve changing the loan term or repayment dates to suit you better, although this can lead to a higher-cost loan in the long-run as interest charges may be more as a result. 

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