You never know what’s just around the corner. The worst can happen when you least expect it, and you may be faced with a bill you’ve not accounted for this month – whether that’s because of urgent car or home repairs, or even medical bills. Thankfully, some lenders can offer you the funds you need to deal with a crisis. Payday loans bad credit and same-day loans are both types of short-term loans that you can take advantage of when you need them most. Read on as we explore these loans in more detail.
What is a short-term loan?
A short-term loan is a loan that is typically paid off over a period of anywhere between a month, to a year. This depends on the lender and the loan that you choose to apply for. They are most commonly used as a way of getting funds quickly, for example, if you are faced with an unexpected bill and your cash flow for the month won’t stretch to cover it. These loans are provided by alternative, online direct lenders that tend to have more lenient requirements than you’d find with traditional bank loans, which is another factor that sets them apart from the rest. Below, we’ll explore the benefits and some of the options that you can choose from if you think you could benefit from a short-term loan.
What are the benefits?
There are a few advantages that come with this type of loan, the first being that they are incredibly easy to apply for. Alternative lenders are based online so that application and approval process can be done from the comfort of your own home, with just a few simple pieces of information. Your application is reviewed, and a decision will be made based on affordability, rather than your credit score, or how you’ve paid your bills in the past, which is another huge benefit. Some lenders can provide money in your account the very same day that you apply – so if you need emergency funds, you don’t have to wait around for them. There is a huge range of options to choose from depending on which terms suit your needs best. Here are a few of the most popular options to choose from when it comes to short-term loans.
Payday loans
These loans are some of the shortest on the list when it comes to the repayment period. They are there to help tide you over if you’re struggling to stretch your income to the end of the month due to an unprecedented crisis. These loans will typically need to be paid off when your monthly wage comes in. They have a repayment period of around a month, and because of this, they often have some of the highest interest rates. Whilst they can be used if you are struggling, you should make sure that you can afford to pay off the loan, with the accurate amount of interest applied before applying. They are accessible for those who have a bad credit history, and they’re easy and quick to apply for.
Loans for bad credit
Bad credit loans are different to payday loans as they have slightly longer repayment terms. They are still classed as short-term loans, but the term tends to range from between 3-6 months, spreading the cost of the amount you choose to borrow. They allow you to borrow a small amount of money, and online direct lenders that offer these loans make their approval decisions on affordability, rather than credit score so they are highly accessible. Again, it’s always best to check the interest rates with these loans, especially if you have a low credit score.
Same day loans
There may come a time when you need money, quickly – to help you deal with an emergency. This is where same-day loans can come in useful. These loans are another type of short-term option that, like bad credit loans, typically have a repayment term of 3-6 months. Because online lenders have an easy application process and don’t require as much information as traditional lenders do, you can complete your application, and be approved the same day. Lenders will work as quickly as possible to decide on line with affordability checks, so you can benefit from the amount of cash you need when you need it most.
