subject: Advantages of Short Terms Loans – Do You Need Hassle Free Cash Quickly And For Just A Short Period Of Time? [print this page] Advantages of Short Terms Loans Do You Need Hassle Free Cash Quickly And For Just A Short Period Of Time?
Sometimes we are in need of quick cash for personal or business expenses and really don't need the money for all that long of a time period. In essence, we need a fast boost in our finances without a lot of hassle. The advantages of short term loans are quite numerous for those in an unexpected financial crunch.
Short terms loans are particularly helpful if you do not want to be bound by the conditions of a longer term loan. Many types of companies offer short term loans. There are banks (of course), financial institutions and online lending companies that can help meet your need for a fast, short term loan.
One of the advantages of short term loans is the repayment duration. The standard repayment period can last anywhere from well under a year all the way up to 5 years. Additionally, the repayment terms are crafted to suit your current ability to repay, which can be very helpful. Here are some additional advantages of short term loans that can assist you in deciding if a fast, short term loan is right for you:
1) Good For People With Poor Credit
Short term loans are a great option for people with poor credit. Typically, people with poor credit, have a hard type getting a loan; not so with short term loans. In fact, if you do have poor credit, these loans can actually help your repair your credit over time. Of course, you need to repay the loan in full and according to the lending terms set out at the time the loan is made.
2) Short Term Loans Offer Lower Interest Rates
As a function of the short repayment term, these quick loans have lower interest rates overall. In the short term, the rate is higher; that is true. But, if you do the calculation properly, you will observe that you are actually paying less for interest than longer term loans. This is because although long term loans have lower interest rates, the money that you accumulate from longer years of interest repayment exceeds the amount that can be saved from lower monthly installment.
3) Shorter Loan Approval and Processing Time
Depending upon the lending institution you ultimately work with, loan approval times for short term loans are substantially shorter. There is far less paperwork and processing times for these loans as well. It is not uncommon to be approved for a short term loan and have the cash made available to you within 24 hours. Since, these loans do not require you to put up collateral; they are much easier to obtain than larger, long term loans.
The advantages of short term loans can vary by applicant. Also known as payday loans, these loans are easier to secure, your funds are disbursed quickly, and, in general, involve a lot less hassle than long term loans.
