subject: Short Term Loans What Are Your Options? [print this page] In this article we will discuss short term loans not as a form of payday loan but as a form of credit facility that has a short repayment period.
Short term loans may include flexible loans with a repayment period of anything less than six months. These loans have a longer repayment period than payday loans but have almost the same features. You have a one day approval period when you apply through certain providers. These loans may require one to have security against the borrowed amount. This is dependent on the financial institution providing the loan as well as the amount you seek to borrow. These loans are offered online with an increasing number of companies offering this service. This makes the process of applying for the loan fast and easy. Since this can be done at the comfort of your home or office.
One other kind of short term loan is the overdraft facility that is offered by most banks. This is a credit facility where you agree with the bank to overdraw on your account such that the balance in the account is below zero. An interest is usually charged at the day of repayment. There are various sites in the U.K. that allow you to compare between different providers.
Using your credit card to make a purchase may be considered as a short term loan. This is because the money used to purchase the given goods or service is borrowed to be paid later. Credit card purchased also attracts an interest that is determined by the bank. In order to get a credit card you need to have good credit rating. This will allow you to get approval from the bank that you apply to. This is the main disadvantage of credit cards.
Confusion
When and if you have an immediate need for cash and that you do not wish to be too burdened with repayments then consider taking a short term loan. This loans offer a longer repayment period than other forms of shorter term loan facilities. Short terms also have the advantage of allowing you to pay off the loan with manageable monthly instalments. And they also have the advantage of giving you a high amount of loan in those cases where you may need it.
