5 Benefits of Short Term Personal Loans

If you need quick cash to pay for immediate or unforeseen expenses, talk with your bank or financial advisor about short term personal loans. These types of loans are a fast and easy way to get small amounts of money in a short period of time.

Instant Cash

Short term personal loans provide immediate cash when you need it the most. Let's suppose you are in a car accident, or your home is damaged in a storm, or you injure your knee during a basketball game. Even if you have insurance, these costs can quickly add up and become a burden. No matter the reason, an instant loan provides a bit of financial comfort for those needing quick cash.

No Credit Check

Short term personal loans offer limited eligibility requirements. For most short term loans, borrowers must simply show proof of income and a legitimate checking account.

You can get a short term loan even if you have poor credit. In fact, many people get a short term loan as a way of increasing their credit score. For example, if you get a short term loan and repay it within a few months, your credit score will improve. This could make you eligible to receive other, longer-term, lower-interest loans when you need them.

No Collateral

With most long-term loans, borrowers must put up some type of collateral (e.g. house) to back the loan. With short term personal loans, however, you do not need to provide any type of collateral. Since there is no collateral, however, short term personal loans often have higher interest rates than traditional loans. If you can make your payments on-time and pay off the loan quickly, though, a high interest rate will not significantly affect you.

Online Access

Most banks and other financial institutions offer an easy application process for short term personal loans. Often, you can even fill out all required information online and receive your money within a matter of days. It is a hassle-free way to receive instant cash.

No Long-Term Burden & Stress

For most people, the word "loan" carries a negative connotation, as we tend to associate "loan" with "debt." Short term personal loans, however, have a shorter repayment term than other types of personal loans. In this way, borrowers can get extra money when they need it and pay it off quickly, without feeling as though they are trapped under a mountain of debt.

The quicker you can pay off the loan, the less total interest you will have to pay. If however, you require a longer repayment term, most financial institutions will work with you to come up with a repayment plan that fits your budget.

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