There will likely be a day when you find yourself in a position of facing a significant personal cash crunch. You may need the cash for many reasons – you have blown your budget this month, you need instant cash to live on until your next paycheck, a holiday or vacation is right around the corner and you need some money to really enjoy it, etc. Whatever the reason, short-term personal loans are here to the help you!
Key features of these short-term personal loans
• They are also known as fast loans. After submitting your application, you can get your funds within 24 hours.
• These loans are for small amounts. Typically $200.00 to $2500.00
• They are easy loans to apply for. The application is done online and doesn’t require much documentation.
• Depending on your situation, a payday loan can either be secured or unsecured.
• The time for this loan is usually very short, ranging from two weeks to a few months. The lender usually sends an email to the borrower when the payment is due.
• The interest rates for cash unsecured loans is higher than other personal loans that are available in the market. But the process is faster!
What If Your Credit Isn’t Very Good?
Are you worried about your credit rating? You really need some extra cash but don’t know if you have a high enough credit score to get a loan? You can still get yourself out of your cash crunch by choosing a lender who makes bad credit short term loans.
Since your credit score is bad, you are considered a high risk customer. So, you’ll pay a little more, but you can probably still get a loan for a short period of time. The lender cannot be certain you will be able to repay the loan so they charge a little more for the risk. Getting approved for a bad credit loan and then repaying it on time can be your first step to a better credit rating.
You can always look for the following loans:
• Bad credit personal loans are easy to get and are generally for shorter time periods.
• You can always ask for a loan from friends or family (just be careful)
There Are Questions You Need To Consider!
However, you may still have questions regarding the loan application, such as:
• Are there any documents needed when applying for the loan?
• Will you still be approved for the loan even if you have bad credit?
• How much will the interest rate be in this kind of loan?
• Can you extend the repayment period?
• Are there any repayment plans available?
First of all, this type of loan is a very simple type of loan. As mentioned before, all you need to do is apply for it and pay it back on your next salary.
The great thing about this loan is that you don’t even need to have any documents. All you need is a proof of employment as well as proof of income, and of course, you also need a valid ID, such as your driver’s license, birth certificate, or your Social Security card.
You don’t need any special documents when you apply for this loan.
Regarding your credit score, payday loans doesn’t necessarily require you to have a good credit rating. Although a good credit rating can help and it can also lower the interest rates, you need to consider the fact that payday loans are considered to be a low risk loan in the part of lenders. Because they are sure that you will pay off the loan on your next payday through post dated checks, they don’t necessarily require you to have a good credit rating. In fact, some lenders won’t even take a look at your credit score.
The interest rate is quite low for this kind of loans. However, it still depends on the lender. Some may offer loans that have higher interest rates, while there are also others that can offer you lower interest rates.
If you can’t afford to pay for everything in a single payday, then you will see that this type of loan can be adjusted in terms of repayment. You can pay it off in 2 paydays or even more. However, you have to remember that the longer you pay off the loan, the more interest will accumulate. You have to remember that you have to choose repayment plans that you are comfortable with. It shouldn’t be too tight where you will use almost your entire salary to pay off the loan. Besides, you wouldn’t want to wait for the next salary day for you to have some money to buy food, would you?
Also, if you choose a longer repayment plan, then you may end up paying more interest than the principal of the loan.
These are the things that you have to remember about payday loans. It is a simple loan that can be easily paid off. In times of financial difficulties where you need instant cash, this type of loan is the best type of loan that you can ever get.
The best part of short-term bad credit payday loans?
They are still unsecured loans; you are not required to secure your personal assets to secure the loan. It is also important to remember, however, that this loan is to get back on your feet so you can get back your credit rating.
These small cash loans are supposed to tide you over for your cash crunch, they sometimes end up putting you deeper in debt than actually solving the problem. Borrow very carefully and repay promptly. And consider re-checking and re-doing your monthly personal budget.