Short Term Loan Facts
One of the most important factors that you should know about short term loans is that the loan can be for any amount of time such as from one week to six months. Remember to only use short term loans for emergencies such as medical emergencies, car repairs, etc. and not for anything frivolous such as a vacation, etc.
Short term loans are perfect for adding to the household budget for a short period of time. The maximum amount most lenders provide is around $3,000. If you need more money than that you may want to consider other types of loans from banks or other financial institutions where they take collateral such against the loan. Types of collateral that are usually accepted are cars, homes, and jewelry.
Lenders charge additional fees if you default on a payment. When it comes time to make a payment on your loan and you either need more time or don’t have the money the lender will charge late fees in addition to the interest and amount of the loan.
If you have payments that are late it negatively influences your credit score which can make it more difficult to get a loan from a bank in the future.
When you payoff your loan with a lender you are then able to borrow a higher amount should you need another loan in the future.
It takes less time to process your first loan that it does to process a loan through a bank or other financial institution. Most applications are processed in 24 hours or less and the amount direct deposited into your bank account the same day. You also don’t need perfect credit to apply for a loan since lenders do not run credit checks.
One of the best features of these short term loans is that both the application and the process can be done entirely online.
So if you cannot borrow the money you need from friends or relatives, borrowing from a bank is out of the question and you need your car repaired or pay an unexpected bill then a short term loan may be the best option for you.
If you want to know where to find lenders just search online for loans direct lenders to find list of lenders available in your area and online and more information. But be warned, and do pay close attention to the interest you will be paying. These are considered by many a last resort for borrowing money.