Short-Term Loans – What You Need To Know
Are you struggling with bad credit and finding it difficult to get approved for a loan by your traditional bank? Well, the online lending platform has led to the emergence of different loan products that offer alternatives to bank loans.
Unlike conventional lending institutions, these lenders will approve your loan request based on your capacity to pay back the loan rather than your credit history. They make it easy for individuals with bad credit to access quick cash when faced with a financial emergency. You also don’t have to worry about the lengthy credit checks. The approval process is quite fast and you can get your funds on the same business day.
How to apply for short-term loans bad credit
Before your loan request is approved, you’ll have to meet the lender’s approval criteria. Although lenders’ requirements vary from lender to lender, most of them will require that:
- You are at least 18 years old.
- Have a source of income either from business or employment.
- Be a permanent citizen of the state you are borrowing from.
- Have an active checking account.
- Produce active contact details. It can either be your phone number or email address.
Most lenders have simplified their application processes making it easy to navigate quickly. You can now apply online and attach all the relevant documentation instead of going to the lender’s physical office.
Once you have filled out the loan application form, we’ll use the personal information you’ve provided to match you with reputable lenders who’ll review your loan request, and if you qualify for funding, they’ll approve your application immediately.
The lender will then direct you to their page so that you can check on your loan terms and conditions. You can also compare other loan offers on the lender’s page to see what works for you. If you agree to their terms, you can append your signature on the loan agreement form and the funds will be disbursed to your checking account instantly. You are also free to walk away from the deal if you feel it’s too expensive.
Getting a loan has never been this easy. With short-term loans for bad credit, you don’t have to worry about your credit scores. Lenders have made it easier for individuals struggling with bad credit to get access to quick cash without a hassle.
How expensive are short-term loans bad credit?
Just like payday loans, these loans have a short repayment period of between 15-30 days. Since the loans are unsecured, the interest rate charged is usually higher than your typical traditional loans. Lenders in most cases charge the high interest to cover the risk.
Although there is a curb to how much lenders can charge an interest rate, some predatory lenders charge exorbitantly to take advantage of the vulnerable borrowers. It is, therefore, important that when looking for a lender, you compare their charges and choose the most affordable.
Your responsibility as a borrower
Before taking out a cash advance, you should do a critical evaluation of your current financial status. Weigh your income versus expenditure, and judge if you are able to repay your loan without delay as late payments may attract penalties that will make your loan more expensive.
Apply for loan amounts that you need are able to pay back without difficulty. If it helps, have a clear budget on how you plan to use the borrowed funds to ensure you don’t pay back for what you cannot account.
Don’t use these short-term loans to sort out your long-term financial problems. It will only plunge you into more debt. Short-term loans are meant to bail you out during emergencies.
You can also seek other alternative forms of credit. Work on building your credit scores instead of relying on loans for bad credit as this form of funding is very expensive. A good credit score can enable you to get a low-interest loan from a traditional bank. You could also opt for term loans or credit cards because they are more flexible.
Before appending your signature to any loan agreement form, ensure you understand all the terms and conditions of the loan. Don’t be afraid to walk away from the deal if you feel it doesn’t favor your financial situation.
Short-term loans are a great relief to individuals struggling with bad credit. Thanks to these loans, you don’t have to worry about your credit score when you need funding. It’s, however, important to know that this form of credit is expensive and could plunge you into more debts.
Fill out our easy application form online and let us connect you to reputable lenders who’ll make your quest for easy online loans much easier.