Tips on getting short term loans
People often seek a short term loan to cover up their financial requirement for a specific and short period of time. It usually should be paid back within a couple of weeks and are often charged with higher interest rate than that of traditional loans or line of credit.
Here are the tips on getting short term loans online.
- Decide on the type of loan - There are four basic types of short term loans available to individuals with credit score - payday loans, title loans, pawnshop loans and advance fee loans. Fees and interest rates charged with the loans may differ significantly. Title loans and pawnshop loans should be secured by collateral, while payday loans are considered as short term unsecured loans.
- Determine the loan amount - As the next step, you need to determine how much money you require to borrow and how soon you will be able to pay back the loan. For instance, title loans should be paid back in full within next 30 days of receiving the loan. Make sure you have enough cash in hand by the due date so that you can avoid incurring extra interests and fees or the peril of losing collateral.
- Select a lender - As the next step, select a lender and complete application for short term loans. You can choose an online lender or a lender in your locality. All you need to provide a photo identity proof, recent paystub and details of bank account in order to apply for the loan. In case of a title loan, you have to furnish a valid car title.
- Wait for loan approval - It usually takes a couple of hours for the loan application to be sanctioned. It is likely that your lender will directly deposit the loan amount into your bank account on the same day.
Points to note
Here are some important points that you must take care of before borrowing a high-interest short term loan.
- Check with our state's attorney general's office to ensure that the lender is licensed to run business in your state
- You must go through the fine print before you sign off the loan agreement to ensure that you understand the interest rates and repayment schedule.
- Beware of the short term loans online lenders that want you to pay an upfront fee in order to approve the loan.