If you ever find yourself in a situation where you are in need of funds to finance a purchase - including work on your home, family needs, or to consolidate an existing debt - a personal loan can be a good way to get the money that you need.
The process is typically the same whether you choose to borrow from an online lender, bank or credit union. Personal loan terms generally range from between 24 and 60 months, but this can differ; some may go up to as much as 72 months. Much like a credit card or other loan types such as home mortgages and car loans, personal loans are repaid in monthly instalments.
To qualify for a personal loan you must:
In order to determine how capable you are of making repayments on a loan, lenders will run a credit check. Good credit will put you in the best position to receive a good interest rate. But if for any reason your credit score is low, you still have options.
A short-term loan, simply put, is a loan where an amount is borrowed from a lender and that amount, plus interest, is paid back in a relatively short amount of time - usually less than a year. You can request short term loans online, or with a bank or credit union.
Short-term loans are designed to be paid back over the courses of months rather than years, and they therefore come with a high APR to make up for the fact that their term lengths are so much shorter than what you would get with other loan types.
Short term personal loans are a great way to get your hands on the finance that you need.
What makes them so popular is that they work by offering you the money you need, when you need it, without requiring collateral. For anyone who has found themselves in a pinch unexpectedly, a short term personal loan can provide a way out that is fast and easy, often with lower APR than a credit card.
These loans are, of course, not without risks and it may be the case that some people are not in the best position to make use of them safely. But for those who are, they can be a really excellent resource.
To get a short term personal loan you must follow these steps:
As with any other type of loan, a short term loan has the potential to affect your credit score.
When you borrow money - any amount of money - you enter into a promise to repay under the agreed-upon terms. As your credit score is a numerical reflection of your history with debt, how reliably you repay your short term loan will become a signal to future lenders. Either signifying that you have lived up to your previous promises to repay a debt, or that you have not.
Essentially, if the money you borrow is repaid promptly and in accordance with your loan terms, your credit rating will be affected in a positive way; on the flip side of this, failure to repay your loan will lead to your credit rating suffering.
Short term loans can be immensely useful to the right people. Understanding the potential disadvantages of taking out a short term loan can help you to decide whether or not it is the right course of action for you. Drawbacks of short term loans include the following:
Short term loans also come with a number of advantages, which you should consider carefully. Benefits of a short-term loan include the following:
Short term loans often have a significantly higher APR than that of the usual bank financing. These loans generally have an APR of between about 390% and 780%, with the average APR for a short term loan sitting at around 400%. In the case of personal loans or credit cards accessed through a standard bank, the APR tends to be a fair bit lower. For example, 15% APR is about the national average for a credit card.
It can be a bit difficult to visualise, in money amounts, how APR for short term loans works. An example would be; if you were to take out a $200 loan with a $30 loan fee, with a 12 day repayment term - the APR would be 456.25%.
Of course, your interest rate can vary widely depending on your lender, the loan amounts, and the length of your loan terms.
There are a number of different types of short term personal loans, including:
If you’re looking to get a small loan and need it fast, Loanza's quick and simple process is set up to make that happen. Our panel of lenders includes many who are offering same day loans, with terms and conditions to suit anyone.
You could have possession of the funds you need in a matter of minutes from when you are approved. Although the speed of receiving the funds into your account is subject to the procedures and policies put in place by your bank.
In short - yes you can! There are plenty of lenders who are comfortable offering bad credit loans as a relief option for individuals with limited borrowing opportunities.
Short term loans are designed with the needs of people with lower credit scores in mind. But not all lenders operate the same and every loan request is looked at on its own merits, meaning that approval is never a guarantee.
It is a good idea to be cautious when it comes to taking on any loan; even more so if your credit is bad. You should make sure that anyone you consider doing business with on a bad credit loan is trustworthy by keeping an eye out for red-flag warnings. For instance, if the lender;
It may be a good idea to look elsewhere, as these are indicators that you may be scammed. Before making a final decision, consider the pros and cons carefully and protect yourself by consulting with a dedicated loan broker like Loanza to find your best options.
At Loanza we can help you find a short-term loan.
Don't waste time searching for 'short term loans near me' and attempting to wade through all of the many options on your own! When you search with us it is free and secure, with no hidden fees, obligations or risks to your credit score. Our extensive network of direct lenders means that you have great chances to connect with a good fit for your needs. Our process is super easy - just take 2 minutes to fill out our simple form.
No matter how good or bad your credit may be, you are always only a few clicks away from being connected to a reliable lender. Getting a loan has never been easier!