We all know that a loan is considerable amount of money, or sometimes a property, borrowed to meet the financial needs of certain sensible purposes, where, you would be repaying the loaned amount either in instalments or entirely before the due date, however, the creditor wants you to, but including the one main thing that you can never evade is the ‘interest amount’. That is, you would be paying more than the amount of whatever you had borrowed as the principal and that is called the interest amount, which is something like a ‘thanking money’ or ‘service charge’, whatever pleasing way you can call it, but not to forget that you can never escape from paying it! This interest amount varies according to the loan type and the loan duration, where it is generally higher for the short term loans and relatively lesser for the long term loans.
Choosing a specific loan type depends upon your financial situation and need, where basically, when you are in no particular hurry, you can opt for long term loans with nominal interest rates and when you are placed in an emergency and require some immediate financial assistance then, short-term loans could be your suitable option, as with fewer formalities you can avail your loan money in matter of few minutes from reliable companies like ‘Lucky Loans’. To know more about their policies and conditions, click here.
What are short term personal loans?
Personal loans are the loans availed to satisfy the financial demands of personal purposes like the wedding, medical bill payment, buying a car, or repairing your car etc. The short term personal loans are generally meant for those unforeseen emergency situations, where you couldn’t afford time for lengthy loan related formalities but only require immediate cash flow to save you from the pitfall.
The loan is named short term because you are expected to repay your principal amount along with the interest money within the shorter duration, typically ranging from few days to few months depending upon the short term loan’s type and the crediting company’s policies.
When to avail a short term personal loan?
As short term loan includes higher interest rate, it is not suitable for every situation and is best when restricted for emergency or quicker purposes like the following,
Unexpected medical expenses
Sometimes, you are chosen to meet grave situations like the car accidents, heart attacks or other relevant emergency medical situations, where you are unprepared to meet the ginormous medical expenditures. In such scenarios, short term loans could fetch you the immediate money without any tiresome formalities and wait time.
Bad credit history
When you don’t have a proven credit history but an alarming amount of debts to repay and the banks are not ready to offer you any suitable loan, then in such scenarios, short-term loans could be your best bet. Apart from offering means to consolidate your debt, they could also help to repair and boost your credit score when you make the loan repayments promptly on or before the due date.
When you are unexpectedly embroiled in the job layoffs of your workplace and forced to unemployment, then to meet your immediate living expenditures, you can resort to short term personal loans, where once you find an able new position, you would be able to repay the loan amount on time.
Certain miscellaneous expenses like repairing your car, improving your homes due to some leakages or problems or even otherwise in general, buying a refrigerator etc. need not wait for lengthy bank procedures to fulfill when you have the immediate advantage of money in the form of a short-term personal loan.
Common types of short term personal loans
Pay day loans
Also, known as cash advance, where typically you are expected to repay on or before your next paycheck and has very high-interest rates associated, as there is no collateral attached to it. Suitable for emergency situations as very little formalities are required to avail loan typically an ID proof or your employment proof and their likes.
Line of Credit
In this short term loan type, you would be paying interest only for the amount you have utilized from the credit amount and not for the entire credit amount offered to you. That is if your credit limit is 3000 bucks and if you have only spent 1000 bucks, you would be paying interest only for that amount instead of the entire 3000 bucks.
Benefits of short term personal loans
No botheration about your credit history
Cons of short term personal loans
Higher penalties in case of any violation or misconducts
Although short term loans offer quick money when you are in need, understand their working policies help you to avoid digging a dangerous hole for yourself that might lead to your ultimate financial devastations.
RiskyHigher penalties in case of any violation or misconducts, Although short term loans offer quick money when you are in need, understand their working policies help you to avoid digging a dangerous hole for yourself that might lead to your ultimate financial devastations.
Contact us for your questions and inquiries
84 Old Edinburgh Road, BELTON LE12 0SB
Phone: 070 3362 6953