Fast short term loans can be a useful option for those who come up against an unexpected expense that needs repaying in a short space of time. They can be obtained from a short term loan lender as either personal loans or business loans, depending on the status of the borrower and the purpose for which they are intended.
What are Short Term Loans?
Although they can be very expensive, if used rarely and responsibly, and paid off in full each time, short term cash loans can be occasionally effective for those who receive their wages on an irregular basis and find themselves needing extra funds for a limited period. Alternatively, a short term loan might be suitable for small business proprietors to help them improve their cash flow. These products operate most commonly as unsecured loans whereby no collateral is placed against them, though this depends on the amount borrowed. Short term cash loan amounts are usually quite low considering they have to be repaid within 21 to 31 days. Small short term loans start at around the £50 mark, though this can rise to a few thousand pounds.
Different lenders (such as payday loan companies, pawnbrokers, traditional money lenders and the more recently popular online lenders) offer many types of short term loans, ranging from payday loans to bad credit loans. Those whose payday is still a few weeks away but have been faced with a financial emergency may require a short term payday loan. Short term payday loans are designed to supplement a person’s income until their next wage comes through and the loan may be set to automatically pay this money back along with interest when that time comes.
Bad Credit Short Term Loans
Some short term loan lenders specialise in short term loans for bad credit. Bad credit short term loans can be an option for borrowers with a poor record of making credit repayments. With these sorts of short term loans, no credit check is made on the borrower’s financial past. No credit check short term loans give bad credit customers the same borrowing rights as a person with a history of good credit, which is highly worrying if they cannot repay even a small short term loan and end up getting into masses of debt. For borrowers able to be responsible, however, a bad credit short term loan is nevertheless an opportunity to help borrowers improve their credit rating provided they make their repayments on time.
Short Term Loans Online
Short term online loans are much more convenient than those obtained by having to go to a bank. Instant short term loans will more than likely be found when applying for short term loans online, which give a guarantee to the applicant they will receive a decision in minutes. If successful, they will receive money in their bank account within 24 hours, which makes this sort of same day loan so appealing to customers. A variety of lenders offer such loans online, including new peer to peer lenders.
Disadvantages of Short Term Loans
However, one major drawback with a same day short term loan is that it makes it all too easy for customers to get their hands on such a fast short term loan. Borrowers of same day short term loans are advised to take their time to consider whether one is the right financial product for them as it only takes a few clicks to get themselves into debt they are potentially unable to repay: interest rates and loan charges for short term loans are usually so high that this is a distinct possibility. Indeed, any borrower considering taking out a short term loan should first consider any less expensive loan options available, such as approaching one or more of their local credit unions. In addition, if they are already in debt they should consider obtaining impartial free debt advice from the various charities and official bodies that offer it; this can include advice on debt consolidation and debt management as well as general advice on different types of debt. In general, debt management companies should be avoided as there is usually a charge for their services, even if that charge is not at first obvious to the debtor.