Short Term Loans – Expanding Scope During Financial Distress
Short Term Loans | Best Tool for Financial Emergencies
In today’s economically unsteady world, you cannot always remain geared to face economic emergencies. So when faced with financial emergencies, short term loans are the best way to overcome them. Short term loans like online cash advances, are debt instruments that provide instant cash when you need it.
It’s Easy to Get a Loan Online
You just have to fill an online application form to get access to a short term loan. You fill out the online form in the privacy of your home without worrying about confidentiality. The payment of short term installment loans is also done online.
It’s a No Fax, No Credit Check Process
The big incentive of a short term loan is that it requires no credit checks. You also do not need to fax any documents to the loan company.
Simple, Straightforward Requirements
To get a short term loan, you must be at least 18 and you should have a checking account that has been open a minimum of 90 days. You must either be regularly employed and paid or receive a regular monthly check such as from a pension or social security.
Payback in 14 to 18 Days with Extension Facility
The payback time for short term loans is usually 14 to 18 days. You should choose a payment date by which you are sure you will have the deposit in your bank account. If unable to pay, you may apply for an extension, but keep in mind that an extension comes with very high interest charges.
Short Term Loans Have High Interest Rates
The interest rates for short term loans are relatively high. A typical short term loan costs $15 to $30 per $100 borrowed. This may not seem much but in terms of APR it is 390 to 780 percent interest which is huge.
However, compared with overdraft fees and utility reconnect fees, short term loans can be a relative bargain. Yet it still is in your best interests to consider your options before applying.
Extending Term is Not a Good Idea
You should pay the entire amount for the short term loan as soon as you can. Any financial adviser would advise against selecting longer terms than usual on this particular type of loan. As a matter of fact, it is advisable not to take any other loan until you repay your short term loan.
Short Term Loans: Useful When Options are Few
Short term loans should be taken after you have exhausted other alternatives like taking an advance from your employer, using checking overdraft protection or taking a small loan from a credit union as an emergency short-term loan.
Cash in hand is a very secure position for every person. But this is not really possible all the time. Small term debt problems can very easily and quickly convert into long term issues. Short term loans, if used in a planned way, can be constructive in rendering long term solutions.