Short term loans could be the ideal opportunity if you are short on money and you do not really need a fortune. This is not the type of loan you get to buy a house, build an extension to your house or get a new car. Instead, you could use it for an emergency repaid, unexpected bills, medical emergencies or perhaps a shopping session.
Short term loans can usually be applied for over the Internet. Applications are normally processed within a few minutes. If you are successful, you will get the money in your account within an hour or two. They represent a convenient option and they will easily put you back on track should unexpected situations arise.
Now that you understand how short terms work, what kind of options do you have? What kind of loans are considered to be short term loans?
Payday loans represent some of the most popular options when it comes to short term loans. Their name is self-explanatory. You get a certain amount of money that you could normally cover with your wages without getting in more debt.
These days, payday loans are no longer about single payments. In the attempt to diversify their portfolios, more and more lenders provide payday loans that could be repaid in more payments, over up to six months.
Payday loans are very easy to apply for. You usually have to do it online. Requirements are basic and some lenders are even specialized in bad credit loans. Processing the application and getting the money should be a matter of an hour or two.
Doorstep loans are not as popular as payday loans. In fact, they tend to lose their popularity, but people still rely on them. A doorstep loan involves pretty much the same procedure as a payday loan, only you do everything in person.
It does not mean that you have to go see a lender, wait in queues and negotiate with a manager. Instead, you complete the same assessment you would normally do online. The difference is that a customer representative will visit you in a few hours and do it on your doorstep.
On the same note, the money is usually given in cash, rather than in a bank account. It is done in person. Again, these loans are not as quick and efficient as payday loans, so they are not as popular these days.
Online Instalment Loans
Similar to other types of short term loans, online instalment plans are great for those with a relatively bad credit score. They allow borrowing small amounts of money without having to worry about the financial past.
The main difference between online instalment plans and other types of short term loans is that you will usually have up to a year to repay it. Payments are taken straight from your bank account. You cannot apply face to face, but over the Internet.
Credit Union Loans
Credit union loans come with extremely diversified terms and conditions. Basically, each union has its own terms and rules, so conditions vary. These loans are normally given to members only. They usually come with better fees and interest rates than other types of loans.
You might need to be part of the union for a certain amount of time before being eligible for a loan.
In the end, short term loans can be quite varied. No matter which option is more suitable for you, it is essential to determine how much money you need. You also need to understand how much money you will pay back – plus, the terms and conditions must never be overlooked.