Dealing with an unforeseen financial emergency can be hard. Probably, you just need $500 to sail through the month, or maybe, it is just about repaying a small debt that cannot be delayed. If you don’t want to ask around, you can consider applying for a cash loan online. Services like Net Pay Advance offer short-term loans for those in need, and the terms & conditions are pretty flexible. In this post, we are reviewing short-term loans, the options and things that are worth knowing.
Why consider short-term loans?
Many borrowers just need money to stay afloat until they get the next paycheck. With short-term loans, that becomes possible. Most lenders don’t need to know why you need the money, so you can use it to repay some of your existing unpaid bills, unsettled debts, or just to handle an unforeseen expense. There are also enough options in short-term loans, such as –
- Payday loans
- Installment loans
Payday loans are due on your next payday, while installment loans are designed to be repaid in installments. The term for payday loans is between 7 and 31 days, while for installment short-term loans, it is 180 days. Depending on the lender and state where you reside, you may get an extension in some cases.
Another big reason to consider short-term loans is quick approval. If your application is approved, you can expect to get the money in just one to two business days. There is no collateral involved, and most lenders don’t bother much about credit checks, as long as they are assured that you can repay the money in time.
Things to remember
- While short-term loans are easy to access, make sure that you are aware of the terms & conditions. Since the lender is taking a risk by giving the loan without an asset or collateral, the interest rate is high, and you also need to pay a onetime fee.
- Repayment of the loan should be your priority. Do not assume that you can get away with taking a short-term loan, because if you don’t pay the money back, you cannot expect such an advance the next time.
- It’s important to use money wisely. Keep in mind that short-term loans are no excuse for reckless or unplanned spending. You have to be extremely aware and in control of your expenses, and if you are taking an installment loan, you have to be a tad more aware of your planning monthly budget.
If you have been going through a tough month, or need money to handle your immediate financial woes, short-term loans can be handy. Just make sure that you work with a lender you can rely on, ask for relevant details before applying, and have the intention of repaying on time. For getting such loans, you must be 18 years of age, should have a stable source of income, and must have an active bank account. You will be also asked to furnish your personal details, identity proof and address.