Short term loans are loans that are designed to be paid back in a relatively short amount of time in comparison to the traditional bank loans. Usually a short term loan would last no longer than 12 months; however you can obtain other types of short term loan that require settling within 1 or 2 months.
Some of the different types of short term loan you can obtain are:
- Payday Loans
- Payday Loans for Bad Credit
- Short Term Loans
- Short Term Loans for Bad Credit
- Short Term and / or Payday Loans with no Credit Check,
They are all slightly different in their offering. As it states above, some short term loans are suitable for people who have bad credit ratings and wouldn’t pass a credit check elsewhere, whereas others are more tailored towards people who will pass a credit check. They all have one thing in common though, and that is that they are all there to provide help and assistance when you require it most.
A short term loan will give you some security whilst at the same time not leaving you worried that you have 4 or 5 years left of repayments. This can help considerably to ease any worries you may have about the loan in the first place as you will have settled the account in a maximum, usually, of 12 months, so you can then get on with your life without having to worry about further repayments.
What Would You Need A Short Term Loan For?
There are plenty of reasons a short term loan may appeal to you. It could be for anything from home improvements through to preventing bank charges and unexpected costs one month. The situation you find yourself needing the loan for would depend on the type of short term loan you require too. For example, if you wanted a short term loan for home improvements you wouldn’t look to take out a payday loan as you would need to be paying back the borrowed amount in full within a month or two. On the other hand, if you had unexpected costs one month, or needed emergency funds to stave off a bank charge or bad credit mark etc. you would be better off using a payday loan as they are designed to help in the immediate short term and are expected to be repaid within a maximum of 2 months.
Why take a short term loan over a traditional bank loan of 4 + years?
A short term loan allows you to borrow funds but also get them paid off in a relatively quick space of time which means you are effectively ‘debt free’ in a shorter space of time.
You can apply for them online using a quick and easy application process, meaning that instead of having to organise a meeting with an employee at your local banking branch, you can sit in the comfort of your own home whilst completing an online application and have a decision back with you within a matter of minutes. Not only that but in most instances, you can have funds in your account in as little as 45 minutes.
Now, as previously mentioned, you can have a short term loan lasting up to 12 months, but you can also have a short term loan lasting a maximum of 2 months. Such loans as these are known as payday loans, with the idea being that you borrow an amount of money that is paid back on your next payday (or potentially the one after). Payday loans are designed to assist people with short term emergencies and this could be instances where there has been an unexpected emergency that requires additional costs to be paid, or maybe there is a bank charge looming and you need to pay it off to prevent any further negative marks going on to your credit file.
Payday loans are provided by many companies, most of whom you will find with a quick search using an internet search engine, and they all have different offers to give. With that in mind, it is worth using a comparison tool to aid you with deciding which payday loan would be best for you to take out, as you can contrast and compare multiple offers at the same time.
Payday loans, along with any type of short term, are your responsibility. This means that before deciding to proceed with taking one of them out, you need to establish if it is something you can afford to take on and pay back responsibly, otherwise you will be held accountable for any negative actions regarding the paying back of the loan.
- Short term loans come in a variety of different guises (e.g. payday loan, short term loan) and have different stipulations (need to pass a credit check, no credit check required, etc.);
- Short term loans can be more advantageous than standard bank loans depending on your circumstances and reasoning for taking one out;
- Short term loans are available for people in most situations (unemployed people may find it harder) and can help to get you back on track;
- You are accountable for ensuring the loan is paid back correctly and on time.
If there is anything further you wish to know about short term loans then please feel free to contact us, or alternatively conduct your own further research using the internet and other media outlets available to you, and remember, if you are in need of funds for a genuine reason, then a short term loan might be your best bet if you aren’t looking to pay a loan off over more than 12 months.