Life is unpredictable and you never know when an expense may be looming ahead. And you can get into big trouble if the expense is an unavoidable one. After all, you cannot defer something as important as an emergency medical test, a credit card bill or any such significant expenses. The best way to handle this critical situation is by taking a short-term loan. This is a good choice because you may not really want to get tied up with a long-term liability just for meeting an emergency expense. Now the real concern is to explore the alternatives that are available for short-term borrowing. Here are some options that you can try.
Short term loans online
If you need cash really fast, the best place to apply for a short term loan is online. This is a great option because it enables you to borrow quickly and with minimal hassles and formalities for the entire process to be completed. What’s more, you may even be able to get one with bad credit, which is seldom possible with the traditional form of borrowing. This is because a website connects you with multiple lenders, some of whom may be willing to give you a loan based on your repayment capacity rather than credit score. For example, it is possible to avail short term loans at Personal Money Network, even if you have a poor credit history. The site helps you secure bad credit loans without much hassles and formalities if your current income puts you in a position to repay your loan subsequently. Just a few clicks and no paperwork, and you can get immediate cash for your needs!
Traditional short-term cash advance
Just like an online short-term loan, a traditional cash advance loan is the one you borrow for a short timeline. They will check your repayment capacity and records before lending a specific amount while charging a flat rate of interest. The only difference is that you procure it directly from a moneylender rather than a website. This can be a little tougher to get because you cannot connect with multiple lenders as it happens with online borrowing. Moreover, money lenders are often reluctant to lend if you have bad credit. So you must have a good credit history in the first place. In case you lack that, you should be able to convince the lender about your repayment capacity and be willing to pay a higher interest rate.
Payday loans
Another commonly used option in short term loans is payday loans. As the name suggests, these are the loans that you take just for a few weeks and intend to clear with your paycheck. Since you will probably pay it off with your next paycheck, the duration of the loan may vary from a few days to a few weeks. Payday loans are ideal for short term personal borrowing because you can get the easiest, particularly if you take them online. Moreover, you can get the loan rolled over with mutual consent with the lender if you are not in a position to pay back with the subsequent paycheck. Generally, a great option for immediate cash needs and keeping your liability confined to a very short time span!
Installment loans
You can opt for a short term installment loan because it gives you the benefit of easy repayment over a span of time. These loans work on the principle of dividing the amount due (including the principal and interest) into small installments that need to be paid on a weekly or monthly basis. Obviously, the number of installments will be more if you plan to pay smaller amounts and less if every installment is more in amount. You can work out these terms with the lender and start paying up the installments to pay off the liability easily. Effectively, you get a large amount of cash for your immediate needs but can repay it gradually and without being stressed out.
Credit card advances
If you want quick cash for the short term, an advance against credit card may also be considered as an option. The limit is generally pre-approved by the credit card provider on the basis of factors such as the credit card history and credit limit of the cardholder. This means that you cannot expect much if you have a bad credit history. However, there are also some providers who are still willing to provide bad credit card loans for the short term. A fact that you need to know about credit card advances is that they generally charge a higher rate of interest as compared to the other borrowing options. But it may still be useful when you need money quickly and plan to repay in just a few weeks.
Always use loans responsibly!
Now that you know about all the options in short term loans, you can choose one that really works for you. Primarily, your eligibility and credit score are the key factors that influence the choice of the option. Apart from being judicious about choosing the short term loan option, you should be careful about borrowing money in the first place. First things first, you should borrow money only if you really need it. Don’t take short term borrowing frivolously because it is still a liability no matter how quickly you need to repay it. Moreover, you have to pay interest on the loan as well and the reason for doing so should be justified.
While you should always justify borrowing, using the loan amount responsibly is equally important. Ensure that you use it only for the purpose you have borrowed it for. After all, it doesn’t make sense to use the amount borrowed for paying college fees for holidaying instead. Also, you should have a responsible attitude and good repayment plan as well because accumulating short-term loans and paying heavy interests on them is the worst thing to do. paying up on time has a positive impact on your credit score and you have good chances of securing loans in the future as well.
