A short term loan offers you an easy and simple way to access finances anytime you have a gap in your budget. Ranging from payday loans to doorstep loans, these short term loans are readily available in most small banks and credit unions. So if you’re looking for a loan, here are some popular reasons as to why you should opt for a short term loan.
When an unexpected emergency occurs, a short term loan can be your saviour. Having a simple process and being readily available, these loans can be accessed within hours. Additionally, these loans have faster approval rates as they don’t require collateral. This means that you will get your loan in a very short time since there no property to be appraised.
Short term debt
The good thing about these short term loans is that they will not keep you in debt for long. They mature a lot faster and do not need a long term commitment. Furthermore, it is much difficult to manage a loan that is spread over a long period of time than one that is paid off almost immediately.
Even though different lending companies have different terms, most short term loan lenders do not need collateral. This means that you do not have to tie your car or house and risk losing them in case you default the loan. After all, short term loans are usually for small amounts of money borrowed for a short period of time. That’s why they tend to be unsecured.
If your credit history is not all gold and roses, don’t worry. You’ll still be in a position to acquire such a loan. Often when you have a bad credit record, you cannot get traditional loans, credit cards and overdrafts since they do require a background check on your history. However, most short term lenders do not always perform credit check thus you can borrow from them despite your poor credit history.
Additionally, you can use a short term loan to improve your credit records. Whenever you borrow this loan, it’s reflected on your credit records and other lenders can also see. When you pay on time it eventually boosts your credit records.