Short term loans for an immediate problem
Immediate problems that arise such as a car repair or last minute payment are an unexpected expense which has to be paid. And one way that you can do this is to obtain a short-term loan. A common solution for a short-term loan is to seek a payday loan solution. This is a type of financing that you can use that has many benefits. Easy Application Lenders of payday loans have websites that you can easily find online. The application process that you need to complete is easy and short. You will need to include information on the application to allow the lender to verify the identity of the borrower. Information you need to provide includes your full name, a street address, and bank information. One requirement to obtain a payday loan is a checking account. A checking account is needed for the direct deposit of funds. Apply Anywhere Individuals who have an immediate problem can apply for payday loans anywhere if the Internet is available. This means that the use of a web-enabled mobile device or a smartphone can be used when a payday loan is needed. A Wi-Fi hotspot is also an option to connect a laptop computer to obtain a payday loan.
No Credit Checks
Individuals who have bad credit or even no credit can apply for a short-term loan. Most lenders who offer a short-term loan or a payday loan do not consider your bad-credit for lending cash. This type of lending means that there is no credit check done to see the credit history of a borrower for eligibility. When your credit history is not checked, your credit rating is not negatively affected.
Fast Application Approval
The application submitted by a borrower is often approved on the day of application submission. This depends on the time of day and if the application was submitted on a weekend. Applications submitted at the end of the day or on a Friday will often not be approved until the next business day. Some payday lenders may be available to approve your application even on Saturday. This is beneficial for any immediate problem you may encounter.
Instant Money Transfer
When a lender approves a borrower’s application, funds are typically transferred immediately or within an hour. This allows you immediate access to money to solve an immediate problem. You can also use a smartphone with an app for your bank to make a payment.
Short term loans can be a viable option for quick repayment of debt, but it is important to know all of the repercussions to not repaying on time.
I have used a pay day loan occasionally when a big unexpected bill pops up. I pay $36 to borrow $200 for 2 weeks. A bank charges you $35 to borrow $1 if you make a mistake doing math in your check book. Who are the rip off people here?
One time I used the wrong deposit slip (my mistake) and my bank charged me $175 in fees for 5 $4 lunches on my ATM card even when I had $1600 in a savings account in the bank. Yes I made a mistake but the bank could have just transferred some money or taken 5 minutes to call me. By the way most banks have a way to make your card be turned down if funds aren't available but you have to ask for it. Then they often "forget" to keep that feature turned on also. Better a devil you know at the pay day loan place that is honest about his fees up front than your good buddy banker that will twist the knife he drives in your back when you are shaking his had in friendship.
As long as the borrower is careful short-term loans can definitely help with some needs that occur in between paydays. The key is "careful use."
Though short term loans are considered a good deal we can change the fact that it has a very high interest rate among all the types of loans offered nowadays. But overall, short term loans are a great option to apply.