What You Need to Know?
Short term loans are a popular solution that you can rely on during your emergent financial troubles. The fact that they’re also easily attainable makes this type of loan the best way to obtain money most especially if you have a bad credit rating and you need fast cash. Before you jump into any opportunities to obtain cash through short term loans, it is important to first understand exactly how short term loans work.
Types of Short Term Loans
There are basically two types of short term loans: payday and installment loans. Payday is the most common type and also goes by the name of cash advance. With payday loans, you are basically borrowing money with the promise of paying the whole amount when your next paycheck comes in. On the other hand, the installment loan could be paid in several batches which can cover weeks or months, depending on the agreement. If you’re borrowing a small amount for the first time, however, then it is advisable that you get the Payday loan type.
How Short Term Loans Work
Short term loans are pretty easy to obtain since the requirements for this type of loan are pretty minimal. You only need to supply personal details as well as verify that you are holding down a job and would receive payment within the next 30 days. Once you and the lender have agreed on the loan amount, the money can be directly deposited into your account. Approval for short term loans is sent in as little as 24 hours, even shorter if you apply online provided that you meet the requirements. Short term loans are also no credit check loans, which means getting approval on this type of loan does not depend on your credit rating.
Keep in mind however that the amount you can borrow depends on your salary. In most cases, you cannot obtain more than how much you will receive in your next payday. Short term credits typically allow borrowing for as much a $1,500 or even more depending on your income. If you are borrowing for the first time however, it might be best to stick to lower denominations ranging from $300 to $500. By doing this, you will have better chances of borrowing again should a need arise.
Typically, short term credits are taken for small expenditures you need until the next paycheck rolls in. For example, you might be running out of groceries or perhaps need to pay the rent as soon as possible.
Of course, some people can’t help but feel skeptical about this easy borrowing possibility. The good news is that short term loans are completely legitimate and can provide you with immediate cash needed for emergency purposes. For additional safety however, you should choose a reputable short term loan lender that will provide you with trustworthy service.
Currently, you can find short term loan lenders available online. The best thing about applying for short term loans online is that the processing is fast and you do not need to personally appear in front of the lender.
5 Common Myths About Online Short Term Loans
You’ve probably heard a thing or two about online short term loans – also called payday loans. And while there’s a lot of information out there, not all of it is accurate. In fact, there are several common myths about online short term loans that simply aren’t true. Here are 5 of the most common myths about online short term loans, debunked:
Myth #1: Online short term loans are incredibly expensive This is simply not true. While interest rates on short term loans can be higher than traditional bank loans, they are still much lower than other types of high-interest financing, like credit cards. In fact, when used responsibly, online short term loans can actually be quite affordable.
Myth #2: Online short term loans are only for people with bad credit Again, this is not true. While people with bad credit may find it easier to qualify for an online short term loan, people with good credit can also take advantage of these loans. In fact, many people use online short term loans to help build their credit.
Myth #3: Online short term loans are only for emergencies Wrong! Online short term loans can be used for a variety of purposes – not just emergencies. Whether you need help with unexpected bills, car repairs, or even a small home improvement project, an online short term loan can be a great option.
Myth #4: You have to have a bank account to qualify for an online short term loan Not true! While having a bank account can make it easier to qualify for an online short term loan, it’s not necessary. There are plenty of lenders who offer loans to people without bank accounts.
Myth #5: Repaying an online short term loan is difficult and time-consuming
Nope! Repaying an online short term loan is actually quite easy and straightforward. Most lenders offer automatic repayment options, so you don’t even have to think about it. And, in most cases, you can repay your loan early without any penalties.