A short-term loan may be an excellent option for you if you need to borrow money to address an unforeseen financial emergency, such as a broken laptop or an essential automobile repair.
You may apply for a loan right now by filling out our simple online application form. Read on to discover more about short-term loans and the circumstances in which they are appropriate.
What is a short-term loan?
It is common for people to take out a short-term loan for a little sum of money that must be returned quickly. Typically, this is a few months to a year, but utilizing the Apply Loan website, you may locate loans that need to be returned for up to five years. ”
They don’t need collateral, so you don’t have to put your house or vehicle up as collateral.
To repay a short-term loan, you must pay the same amount each month until you’ve returned both the principal and interest.
Find a short-term loan quickly and easily with Apply Loan. If you don’t have time to fill out many forms on the websites of different short-term lenders, you may just fill out one form on the Apply Loan website here, instead. After that, we’ll shop your loan among the more than 30 lenders in our network to locate the one with the best terms and the lowest APR.
After that, we’ll take you directly to the lender’s website so you can finish your application there. Our service is completely free and has no effect on your credit score owing to our soft search technology.
How do short-term loans and payday loans differ?
Although they’re used interchangeably, there is a little difference between the two. An online payday loan is a short-term loan that must be returned by the following paycheck. Instead, a short-term loan is repaid over the course of two months or less. Spreading the expense over a longer period of time reduces the monthly payment burden for many borrowers.
These loans are meant to be used in instances when you need to pay for something but don’t have the money to do so at the moment.
For instance, your washing machine can fail. In the near term, a short-term loan may help you obtain the money you need for a replacement into your bank account the same day you apply*, and spread the repayments over the following several months.
Holidays, evenings out, and the like are not appropriate uses for these loans. Additionally, you should only borrow what you really need and have complete faith in your ability to make all of your repayments on time and in full.
Who may benefit from a short-term loan?
As a general rule, these loans are best suited to individuals who urgently need money and have no other means of obtaining it. Some individuals may be able to borrow a little amount of money from family or friends, or they may be able to save some money. These may be preferable options if this is the case, given there is likely to be no interest to pay.
Many short-term lenders are also ready to lend to borrowers without a credit history or with a negative credit rating, making short-term loans a viable option for those in need.
What is causing the sky-high interest rates?
Short-term loan interest rates may seem excessive when compared to the headline loan rates provided by major banks or building societies if you are comparing loans online.
Because short-term lenders specialize in lending to those with bad credit or no credit history, this is a major factor. To put it another way, this increases the likelihood that the borrower will default on their loan payments. Customers pay a higher interest rate as a result of this risk.
Is a short-term loan going to harm my credit score in the long run?
Yes, if you don’t pay your debts on time, your credit rating might suffer. Short-term loans, however, are not unique in this regard.
As an alternative, making on-time and complete repayments might signal that you are a responsible consumer of credit, which could raise your credit score.