Short Term Loans
What Are Short Term Loans?
Short-term loans are borrowed by people who want to get a relatively smaller amount of money for a short duration. There are various options available that give out short-term loans such as banks and financial institutions, payday loans, credit unions, and even online lenders.
However, short-term loans charge a higher rate of interest and you end up paying a higher APR. It is important to consider the late payment penalties, origination fees & other loan charges, and refinancing options before applying for a short-term loan.
But short-term loans, in some cases, do offer flexible repayment terms and can be adjusted as per your convenience.
Advantages of Short-Term Loans
Short-term loans are quick to get as the amount is relatively smaller and is given out for a lesser time span.
Recover the Falling Credit Score
A short-term loan will make sure that you are able to pay off the loan and be debt-free quickly. This will improve your chance of a better credit rating.
Less Overall Interest
Shorter time period of the loan will mean that there will be lesser time for the interest to accrue. Therefore, you will need to pay less overall interest.
What Can You Use Short Term Loans for?
Pay off Older Debts:
You can take out a short-term loan if you need to repay other loans. It is a form of debt refinancing where you can repay the old debts by getting a new debt that has better and more favorable repayment terms.
Repair and Renovation:
Anyone can have a home emergency that might require a sudden expense. Short-term loans can be a great option for such situations. You can get approved quickly, get the amount easily, and repay in a short time duration.
Expand Business & Profession:
You can get a quick short-term loan for enhancing your professional or vocational skills or if you need to develop or expand your business.
How Can You Get Short Terms Loans Online via USTitleLoans?
In a few simple steps, you can get approved for a short-term loan from USTitleLoans:
Fill out an application form on the USTitleLoans website
You will receive your eligibility and offers from the most suitable lenders
Choose the lender, submit the required documents & your bank account details, and sign the agreement
The money you need will be deposited into your bank account
Do I Qualify for a Short-term Loan?
To easily qualify for a loan, you can follow a few steps.
Keep a good credit score
Make sure that you make loan repayments on time to maintain a good score. Most lenders look at your credit rating before deciding to lend you the loan amount.
Validate your income
Lenders also need to ensure that you have a running and stable income coming at regular intervals. This is a major factor to be considered while applying for a loan. Having a regular income and its proof is highly likely to get you approved for a loan.
How to Get a Short-term Loan If I Have Bad Credit?
There are certain options to get loans from for individuals who have a bad credit score. Although they have their risk factors, they are worth considering.
Try a personal loan for a bad credit score
Certain lenders give out loans for short terms despite the bad credit score of the individuals. All you need is to have regular and stable income proof. However, they charge a higher rate of interest which can affect your monthly budget.
Apply with a co-signer
This might increase your chance to get a loan. The chances are even better if the co-signer has a good credit score and a regular income.
1. How many years is a short-term loan?
A short-term loan can start from a minimum of a few weeks and last up to 5 years. Any loan for such duration will be categorized under a short-term loan.
2. Why do banks prefer short-term loans?
Short-term loans generally get a higher rate of interest and are recovered in a short span of time. These are the primary reasons why banks prefer short-term loans.
3. What is the difference between a short-term loan and a long-term loan?
The major difference between the two loans is the term or time span for which they are borrowed. A short-term loan is given out for a few weeks up to one year. Normally, a long-term loan is borrowed for a duration of more than two years. The amount borrowed is also lower in short-term loans as compared to long-term loans.
4. Can a 17-year-old take out a loan?
Borrowing a loan requires you to sign a contract. In order to sign a contract, you need to be at least 18 years or older. This means that a 17-year-old cannot take out a loan.
5. How soon can I get my money?
If you are applying online, you can get approved in as quick as a few minutes and in most cases, you can receive your money in your bank account on the same day as your loan approval.
6. Can I get a loan without a payslip?
You might get a loan without a payslip but you will need to submit other documents and proof to validate and verify your income before the lender. This could include bank account statements or even an income certificate.
Get a Short Term Loans Now!
Want to borrow some money for a short span of time? Now we offer you such opportunities at USTitleLoans. Check your eligibility and find more details below now!Get Started Today