If you find yourself in a financial emergency, it can be hard to find a quick solution that will provide you with the money you need and fast. This is where a short term loan could help. These types of loans have a quick application and review process, so you can receive the money sometimes in less than a few hours if approved. If you’re looking for a loan that’s short term from a direct lender, keep reading and discover they could help you solve your money worries.
Is It The Same As A Payday Loan?
Short term loans are completely different from a payday loan. A payday loan lets you borrow a small amount of money and then pay the whole amount back on your next payday. A short term loan provides you with a few months to a year to pay it off. This can be more beneficial than a payday loan, as you’re not making yourself short at the start of the month. A lot of providers allow you to have flexible monthly repayments too, which can be beneficial in the long run. Payday loans also have a longer turnaround time, meaning your application can take longer to be approved. But a short term loan can be processed in an hour.
What If I Have Bad Credit?
If you apply for a standard loan with a bank, your credit score will be taken into consideration and can be the deciding factor when processing your application. However, some short term loans will still approve you even with bad credit. These lenders are looking at your affordability, rather than your credit score. Although credit checks are still performed, they will take your actual affordability into account even if your credit score isn’t great. If you do have a bad credit score, taking out a short term loan and repaying it on time each month could potentially increase it over time.
What Can I Use It For?
Any money you borrow via a short term loan should be for unexpected or emergency situations. For example, if your boiler breaks down in the middle of winter and needs replacing urgently. Or if the car that you rely on to get you to work each day suddenly breaks down and you don’t have the funds to cover the repairs. A short term loan can provide you with a quick, easy solution to these problems.
How Do I Pay It Back?
A short term loan can still have high-interest rates, but they allow you to pay it back in manageable installments each month. As the name suggests, you also pay it back over a shorter period of time. This means you aren’t stuck paying the same loan off for 5 years and can be free of the debt in just months.
Short term loans can be a possible avenue to help solve your money worries. However, they should be used to solve temporary money worries, not to pay off other debts or fund your lifestyle. Opting for a shorter loan can be an effective tool when dealing with your finances. So the next time you find yourself in a cinch, you could keep them in mind as a viable option.