It happens that you have to urgently pay for treatment, training or an early purchase, and you receive your next paycheck in a few days – this situation forces you to contact banks or financial organizations. But what if long-term conditions and high APR are not suitablefor you? Then it is worth considering a short-term loan.
What is a short-term loan?
In the U.S., short-term loans mean cash loans that are paid by microfinance institutions (MFIs). Basically, such loans serve the circulation of capital and the current needs of clients (purchase of goods, training, treatment, repairs).
A short-term loan can be obtained without collateral, such as a vehicle or other valuable things.
Features of a short-term loan
First of all, short-term loans are repaid in a short period. They involve no paperwork, eligibility criteria are relaxed, there is no need to prove your income, and the application can be approved online without leaving your home or office.
In addition, short-term loans come with an increased interest rate. However, if you only take a loan for 1-2 weeks, an overpayment is small.
Short term loan requirements
Online lenders from our network set the following requirements for borrowers:
- be of legal age in your state;
- be a legal US citizen or resident;
- have a regular income (official or unofficial).
To get a loan, you will need a valid ID, bank account, email and mobile phone.
Pros and cons of a short-term loan
A short-term loan has both positive and negative sides.
- speedy funding – from several minutes to 24 hours;
- bad credit is ok;
- the opportunity to receive money for students, unemployed citizens, seniors, etc.;
- no paperwork involved.
- high-interest rate;
- small-dollar loans;
- short term of crediting.
Short-term loans are approved in 94% of cases, which significantly increases the borrower’s chances of getting money.
Where can I get a short-term loan?
Our network includes the most popular financial institutions where you can get a short-term loan. They are ready to lend you money for a short period.
The interest rate depends on several aspects: the lender, the borrower’s credit score, the loan amount and term, etc. Responsible borrowers can always count on a higher loan amount.
Short-term loans are a profitable financial instrument that you need to use when you need money urgently. To benefit from cooperation with MFIs, you need to correctly calculate your capabilities and take the exact amount of money you need. The more you borrow – the more you have to overpay.
If you need money for a short time, then you can apply via our website. We will connect you to the right lender immediately.
Types of short-term loans
A payday loan is a short-term loan that can help you cover immediate cash needs until you get your next paycheck. A certain amount ($100-$1,000) is credited to the borrower’s account within 24 hours. The debt is paid off in a lump sum.
Payday loans are an excellent option for emergencies. The process is quick and relatively easy.
You can pick a repayment term that suits your needs. The cost of payday loans are capped by law.
Overdraft is a loan provided by a bank that allows a customer to pay for bills and other expenses when the account reaches zero.
Overdraft differs from the standard type of lending: it is “tied” to a salary card or to another banking product, for which money is regularly received.
There are overdrafts on credit cards. It allows you to purchase goods outside the established credit limit.
Other features of overdraft:
- short term – 1-2 months;
- strict limit – overdraft cannot exceed the user’s income by more than two times;
- repaid in a lump sum;
- high interest rates compared to traditional lending.
Advantages of overdraft:
- automatic debiting of money from the borrower’s account;
- small overpayment;
- no need for an additional card;
- the overdraft is connected once, but it can be used for a long time.
Overdraft activation is a service that banks provide not only to individuals but also to business clients.
A credit card is a physical card that can be used to make purchases, pay bills or depending on the card, withdraw cash. The money provided by the bank to the client within the established limit in accordance with the terms of the agreement.
The credit card has some features:
- it is the most expensive banking instrument;
- funds for operations are provided without collateral;
- money can be spent at your discretion (no specific goals);
- lack of a payment schedule (a loan can be repaid in one or several installments);
- any operations stipulated by the agreement are available on the card.
Note! Many credit cards have a grace period of 30 to 60 days. That is, you can use borrowed money for free for a certain time.
A credit card differs from a short-term loan: the debt arises only after the use of bank funds. When paying for goods in the store, you can receive bonuses – a great opportunity to save with the help of a credit card.