“Short-term loans” refer to many different types of financing options available for those looking to secure a small loan with short payback periods to support a personal or business capital need. Short-term loans are especially beneficial for those seeking a sum of money quickly to deal with emergency situations or an unforeseen business or personal expense.
Maybe your homes roof needs replacing or you really want that large-sized TV for your lounge on boxing day, short-term loans can help make up the difference between what you have and what you need. When securing a short term loan in 2019 it is important that you are aware of all the options available to you before making a borrowing decision.
Payday Loans
If you have a stable income but are in need of some extra cash urgently to pay off an unexpected expense payday loans can often be the ideal short-term loan solution. Payday loans offer the fastest loan processing times which means you can have cash in hand in less than 15 minutes as long as you qualify and have the necessary documents available.
To secure a payday loan one must have proof of income, an active bank account, and a valid ID, One can get an up to 50% cash advance on their upcoming paycheque to pay for whatever financial emergency they might be in.
These loans have much higher annual percentage rates (APRs) than long-term loan options but that is because these loans are meant to be paid off in a short duration of time. So, in reality, the cost of borrowing on let’s say a $100 loan can only be as much as $15 if you are able to pay on time.
Personal Loans
Personal loans have slightly higher processing times than payday loans but offer longer payback periods and sometimes reduced interest rates and fees compared to payday loans. If you need cash fairly urgently for an upcoming marriage or home renovation than a personal loan may be a great way to get the money you need quickly with the ability to pay it back in installments over an agreed period of time.
Unlike long-term credit such as mortgage loans, student loans, and car financing personal loans have no strings attached in terms of what you plan to do with the money as long as it is legal. This flexibility makes it an extremely popular choice for those seeking a sizeable sum of money quickly and on good terms.
Credit Card Advance
Most credit card providers allow their customers the ability to take out cash advances from an ATM anywhere in the world. Even though this is a highly convenient feature and extremely useful at time credit card advances can have a huge cost of borrowing attached to them. Not only do you pay ATM fees for the withdrawal but also a credit card fee and a higher percentage interest when you take out cash using your credit card.
Even though this form of acquiring short-term credit is highly convenient it is quite expensive and can adversely impact your credit score. A better option than a credit card advance could be a payday loan which would cost you less especially in 2019.
Bank Overdraft
In times of need one often looks at their bank for help in terms of floating them some cash. A bank overdraft allows customers to be able to withdraw or use a set sum of money even after their account has reached a nill balance.
This feature allows you to still use your debit card even though you don’t have any funds in it until an agreed upon amount. But this convenience comes at a steep price. Bank overdraft fees can often be ridiculously high for small amounts of money.
In many instances, getting a payday loan or applying for a personal loan is substantially less expensive than paying bank overdraft fees, especially, in the short-term.
Line of Credit
A line of credit is offered by financial institutions such as banks and credit unions to business owners and work just like a business credit card. A pre-established limit is set on how much can be borrowed at a time along with a set percentage of interest. Whatever is borrowed is then paid off in monthly installments much like a revolving credit card.
The annual percentage rate (APR) on a bank-issued line of credit is considerably lower than other short-term loan options but it is much harder to be approved for one as well.
Where Can I Secure Short-Term Loans?
Short-term loans or credit are offered by banks, credit unions, payday lenders as well as online sources. Online lending has been quickly growing in the USA as it offers the convenience of having a short-term or long-term loan processed from start to finish all in the comfort of your home or office. Online lending is quick and easy with the money deposited in your account within minutes of approval.
As technology has evolved access to money is becoming much easier than before. This has made smart borrowing even more important today than it was a few decades ago. With so many options available it is always advisable to shop around and get an idea of what type of credit and on what terms is available to you readily in the financial market.
A great online source for securing short-term loans in 2019 is https://personalmoneynetwork.com/short-term-loans/. These guys offer ultra-fast loan processing times at competitive terms and offer the counseling you need to make sound borrowing decisions. Borrowing money isn’t always bad if one borrows smartly. Credit has helped businesses grow exponentially and assisted in an overall increase in the standard and quality of life here in the United States.
If one borrows wisely one can stand to make a lot more money in the short and long-term. But for that, one must have sound financial discipline which is the key to financial independence.