Alternatives to Short Term Personal Loans

Short term personal loans are loans that offer fast cash with a short repayment term (usually 1 to 10 years). Short term personal loans are great for people in a financial bind who expect to have enough money in the near future to repay their loan in full. Since the repayment term is so short, these loans generally have high interest rates.

If you don't think short term personal loans are right for you, there are other ways to receive quick cash.

Person-to-Person Loans

Person-to-person loans, also referred to as "peer-to-peer lending," remove banks from the equation and allows people to invest their money directly with another person. You can find person-to-person loan communities online, where family, friends, and acquaintances invest and borrow with fewer restrictions than traditional methods.

A borrower's interest rate depends on their qualifications, including credit score. Generally, interest rates for person-to-person loans range from 9 to 17 percent. The lender and borrower decide on repayment terms.

Person-to-person loans apply structure and rules to what could otherwise be informal lending among family and friends.

Long Term Personal Loan

Unlike short term personal loans, long term personal loans have a lengthy repayment term (usually 10 to 30 years). They are perfect for individuals who need fast cash but cannot repay the money quickly. Long term personal loans require a credit check and, in many cases, collateral.

If you have a good credit history, you may be better off choosing a long term personal loan over one with a short term. This is because long term loans have lower interest rates, so your monthly payment will be less. People often choose long term personal loans to consolidate debt or to finance a business venture.

Military Loan

A military loan helps servicemen and women during financially tough times. It is offered to any military personnel, regardless of credit history. Military loans generally have lower interest rates than other short term personal loans, and a borrower can designate his or her repayment plan.

Another benefit of the military loan is that the loan application can be completed all online, so he or she can apply and receive funds from any location.

Types of military loans include:

  • advance military loans;
  • military payday loans;
  • VA loans.

Fast Cash Advance Loan

A fast cash advance loan is one of the easier, but riskier, ways to get quick cash. Eligibility requirements are scarce; you simply must show proof of employment (with a gross income of at least $1,000/month) and a valid bank account. Once your application is accepted, you will receive loan funds within 24 hours. Fast cash advance loans generally range from $100 to $3,000.

The downside to these types of loans is that they have extremely high interest rates, and are usually accompanies by steep fees. This is because you don't have to undergo a credit check or set collateral to back the loan. If you're considering a fast cash advance loan over other short term personal loans, be sure to choose a reputable lender that states all fees, penalties, and rates up-front.

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