There are times in everyone’s lives that require money to be used that you don’t have or haven’t budgeted for. There could be a situation where your car breaks down unexpectedly, your roof leaks requiring roof repair, or your business is seasonal and you don’t have money to cover your costs. All of these situations are good examples where emergency cash is required and a loan would be a good idea, particularly a short term loan. Short term loans are loans that are easily available and are targeted for consumers who are likely to pay the loan back in short term time period. If you find yourself in a situation similar to those listed above, here are some facts about this type of loan product.
- The loans have short term lengths
Short term loans are exactly that, they are loans that have to be paid off in a short time period. This time period is typically a year or under. This type of loan is good if you know you will be able to pay it back weekly or monthly because it will go by quickly. You need to pay back according to the contract or you will get slammed with fees.
- The loans are typically expensive
As you can imagine, if you are looking for a short term loan you are typically looking for money fast. Therefore, when you get your loan you should expect to pay for this convenience. Companies offer require individuals and businesses to pay a premium for this product for the sake of its turnaround time and easy accessibility. Not to mention that most short term loans for people with poor credit so they are taking on that risk.
- You can get short term loans online
There are many sites and lenders that offer short term loans online. You can simply go on the various sites and apply online. You will either be given options of different products or steered to what will work for you. Doing this process online is very convenient and quick.
- Short Term Loans are good for small businesses and start-ups
Most traditional loans are hard to acquire when you do not have the financial history of an established business. However, the process for getting approved for a short term loan is more doable for start-ups and small businesses as they don’t always take financial history into account. This is most likely because you are paying for this type of convenience.
- They are actually Credit Boosters
Don’t get me wrong, a short term loan can get some people or businesses into a bad situation if not used properly. However, if you know you will be able to pay it off according to the agreement than you will actually boosting your credit. It is helping your credit because you are taking on this risk and actually paying it off. It is the same idea that if you get a credit card and pay it off regularly, it helps your credit. So be sure that if you are getting into this type of loan that you are able to handle the responsibility.
As we mentioned, Short term loans can be easy, quick and helpful if used properly. Look into your financial situation to see if it is right for you.