A short term loan is typically a loan that is meant to be paid back in less than 12 months. When a person is in need of cash and unable to get a traditional bank loan, they may benefit from the services offered by a short term lender. While these loans often have higher interest rates than traditional bank loans, the requirements to get one aren’t as stringent. Getting to know some of the benefits of short term loans can help a person decide if this is something they want or need.
Ability to Get Funds Fast
One of the most appealing factors of a short term loan is the fact that the money is typically in a person’s account within 24 hours. With bank loans, it can take weeks or longer to see funds from a loan. As a result, if a person is facing an emergency situation, they may not be able to get the money they need to handle it right away.
No Credit Check Necessary
There are many short term loan providers that don’t even require a person to undergo a credit check when seeking the funds they need. This means that even individuals who have less than stellar credit can enjoy the benefits offered by a short term loan. Also, no collateral is necessary, such as a vehicle, home or something else worth money.
Payments are Broken into Installments
The majority of lenders understand that a person is not going to be able to repay the entire loan in a lump sum. As a result, they will setup installments and break the amount, plus interest, into affordable chunks, allowing the person to pay it back a little at a time. In the long run, this makes short term loans affordable and a viable option for virtually anyone.
Don’t underestimate the benefits offered by short term loans for anyone in a tight financial spot. They provide almost instant access to funds and an easy to follow repayment schedule. To learn more about these loans or to see what needs to be done to apply for one, read more here.