Short term loans represent a convenient alternative to traditional bank loans today. The main difference? A traditional loan is normally paid within a few years at least – sometimes, up to 30 years for a mortgage. On the other hand, a short term loan is built to be paid back within months only – usually up to six months.
What to Use a Short Term Loan for?
There are more situations wherefore you might need a short term loan.
- Medical Emergencies
Unexpected medical bills are quite common and may cause various issues. Sometimes, you could be covered by your insurance. Other times, you may need to pay in monthly instalments with the doctor – dentists usually allow such plans. All in all, there are times when you might need to spend money in one go too.
Whether you take regular medication on a regular basis, your prescription has changed or you have just ended up with an injury, a medical emergency is a common reason for short term loans.
- Unexpected Repairs
Unexpected repairs can tackle every aspect of your life. For example, you might need to fix a broken boiler. You do not want to shower with cold water, do you? Especially during the wintertime. On the same note, your car might break down. If this is your only option to get to work or take your kids to school, you do need your car and you cannot afford time off.
Repairs can tackle everything. They could be around your backyard, your gate, your front door, walls and so on.
- Shopping Sessions
If your favourite trainers are on offer and you know they will not last until your next payday, a short term loan could get you sorted. If one of your best friends has just had a baby, you might need to spend some money for presents. Have you forgotten about a relative’s birthday? As long as you can remember on time, you are back on track. But if your payday is way after the birthday, you will need a short term loan.
- Random Bills
Your gas bill could go through the roof when the cold season kicks in. Perhaps you had to make some calls abroad. What if the rent is due a couple of days before you actually get paid? Such situations could be sorted within a month, but they cannot be delayed, hence the necessity of a short term loan.
How Short Term Loans Work?
There are a few steps to go through when applying for a short term loan.
- Agree on the amount of money you need – discuss with the lender or simply apply online. You will also learn about the interest rate.
- You agree on the time to pay the loan back, be it a month or six months.
- You decide on the best time of the month to make payments.
- A credit check will be performed – yet, many lenders are specialized in bad credit loans too.
- Your application gets accepted or rejected within minutes only.
- Your money will be in your account within an hour or two if your application is successful.
- You start making repayments on the agreed date.
In the end, short term loans represent a good choice every now and then. Sometimes, a short term loan could be the only option you have. Whether you are pressured by time, your credit score is not the best or you simply need a small amount of money rather than a massive loan, a short term loan will take you out of trouble and put you back on track.