When applying for a loan there are many things that you have to take in to consideration before finalising your big decision. The amount of money is of course extremely important, but so is the length of the loan and the interest.
With short term loans the monthly payments are larger than longer loans. This, however, should not put anyone off applying for one, paying short term loans in instalments larger than a long term loan can actually be extremely beneficial.
I personally believe that short term loans are a very good choice and more often than not make the best financial sense too. Here are 5 great reasons why short term loans are beneficial for everyone.
The longer that you owe money to the bank or company that you loaned money from, the more and more interest you will rack up. When you take out a short term loan you are going to be paying back the money much quicker. This means that there’s much less time for interest to build up.
Reduces the stress levels
If you’re like me then you will always feel stressed when you owe money to someone or to a bank. It really can take an emotional toll on your everyday life. With a short term loan you will have cleared the amount owed much quicker, which means that you will be free from burden and any stress.
More often than not short term loans are very quick to process, giving you access to the money fast. That’s why short term loans are great if you need to have access to your money quickly. It’s always good to check with the loan provider just how quickly they will be able to process your application.
Taking a loan is a big responsibility, but there are always large expenses that require loans. Make sure you shop around to get the best short term loan on the market before making nay commitment.
Have you taken out a short term loan in the past? I would really like to hear about your experiences, stories and tips. Just pop your thoughts down in the comment section below for everyone to read.
Why I Love Short Term Loans
Short term loans are great for life’s little emergencies, especially with things happening when you least expect them to. I think these loans are a great idea and I have come up with just a few of the reasons that they can really help you out in a time of need.
One of the best things about a short term loan is that it is very very flexible, you are never locked into a specific period of time. You can borrow the money for a flexible period of time and you can even pay it off early if you wish. This is perfect for those that are just looking to bridge the gap between a few extra expenses and their next pay day.
Of course you could go to a bank, but this would mean that you would need to go through a lengthy application process that may not exactly suit your current situation. Most short term loans can be paid into your account on the same day, so this can be a much better option for people needing money right now.
Smaller minimum amounts
If you went to a bank you would most certainly be looking at a higher minimum amount and if you wanted something lower, they would most likely recommend a credit card to you. These take time to get, as we discussed above. They also have a much higher minimum amount compared to the short term loans, which can be as low as £50! This is perfect for when you just need to little bit extra, rather than £500. This is great because you won’t be tempted to spend an unnecessary amount.
Compared to bank loans and credit cards, short term loans have a much lower criteria, because they are much smaller in size and therefore a much lower risk for lenders. This also means that they can be approved more often and much faster than other loans, as we touched on above.
Short term loans are also great because they are not secured loans and do not require you to have collateral in order to get them. This is perfect for those that do not have a huge number of assets and just need some fast cash.