Short Term Loans:
Financial emergencies can arise from various sources. In the face of an unpaid bill, there are many thoughts that race through the mind. All options are reviewed quickly, and the risk of doing nothing to find additional cash is dismissed as irresponsible. The fees and penalties associated with unpaid obligations can undermine the credit record of responsible people. One of the solutions to an immediate cash flow problem is a short-term loan.
Types of Short-term Loans
Various short term loans are available for the individual with a specific financial need that must be addressed immediately. These short term loans may not require collateral from the borrower. Each lender will have different qualification requirements based on the amount of money requested and the terms of the loan.
We are pleased to extend to you the same professional service online as you would receive in our office.
- Payday loan – As the name says, the payday loan is an amount of money that will be borrowed until the next payday. Proof of income will override the credit check that is performed for conventional loans. The entire amount must be repaid when the payday arrives unless the borrower rolls the loan over for another pay period by paying the fees associate with the payday loan.
- Business loan – Repayment of a business short-term loan is made through installments over a period of 90 days up to 3 years depending on the terms of the loan. Less interest is paid on a short-term business loan which is the distinct advantage to the short-term business loan. Lenders will require details about the business venture, which will be communicated through a written business plan. A credit check is performed for short-term business loans.
- Student loan – Emergencies can occur when a student is a long way from home and money is required immediately. Care must be exercised by the student because mishandling the short-term student loan can jeopardize the eligibility for federal student loans.
Process to Acquire Short-term Loans
Due diligence is required by the person seeking a short term loan. The exact purpose for the loan should be defined before the search begins. There are some legitimate reasons to pursue a short-term loan, but frivolous attempts to acquire this type of loan might lead to a financial hardship. Every decision about the short-term loan must be considered against the borrower’s ability to repay the loan.
- Appropriate loan terms – Payday loans are repaid in one lump sum payment when the next paycheck is deposited in the checking account. Short-term loans are unsecured and can be repaid through a series of installments.
- Reputable lender – Online lenders have built positive reputations and offer different loan options from traditional lenders. Each lender should be investigated prior to filling out the application.
- Online forms – All requested information must be provided through the requested methods. Most applications for short term loans begin with a basic form that will be sent to a wide variety of lenders. Incomplete applications will be rejected, which is a waste of the borrower’s time.
- Contact lender – After a lender decides to offer a loan to the borrower, direct contact will be made between the lender and the borrower. All instructions must be followed to complete the loan approval process. Most lenders will approve or deny the loan within 24 hours.
Warnings for Seekers
Any number of issues can arise in the life of an individual or family. Immediate cash might be required to pay a medical bill, repair a vehicle or pay the utility bill. Each person has a different view of the importance of finding cash in a hurry. Borrowers should think about some of the risks of securing short term loans, including:
- Ability to repay – A loan will impose additional strain on the household budget because of the amount of money that will be needed to make a loan payment or repay the loan entirely. If another loan will be required to repay the first loan, the slippery slope into financial disaster must be avoided.
- Monthly obligations – Other bills must be evaluated to determine if the short term loan could be avoided by making adjustments in other expenses. Eliminating discretionary expenses might be the better choice for the individual who lacks sufficient funds to meet monthly expenses.
- Cause of need – Close evaluation of what caused the emergency will reveal the basis for pursuing a short-term loan. Most lenders who provide short-term loans will encourage all borrowers to be very careful in the pursuit of the loan.
- Risk of default – Financial impacts cannot be overstated for the borrower who might default on a short-term loan. All other options must be explored prior to seeking a short-term loan if there is any risk of defaulting on an installment payment or repaying the entire loan balance.
Some legitimate uses of short term loans exist for those with the ability to repay the borrowed money. A large expense can arise once in the course of a number of years, and a short-term loan might assist with the situation. Every instance is different, and the borrower must consider the other the financial obligations that face the household. All other avenues must be explored to avoid deepening the debt deficit by accepting the obligation for a short-term loan.
Reputable lenders provide important information about the best ways to repay the loan balance. Under certain conditions, the lender will deny the loan to avoid default. Wise borrowers listen to the warnings from online websites that attempt to prevent financial hardship through the misuse of short term loans.
You may use our services to apply online for a personal loan.Let us help you get the credit you DESERVE!
“even with bad credit”:
Apply Securely Online.
BONUS: APPLY NOW AND RECEIVE A FREE LIFETIME MEMBERSHIP TO THE DRCREDIT FINANCIAL NETWORK!