Do You Need a Short-Term Loan?

These recessionary times have exacted quite a toll on the economy and on individual consumers. That does not mean that consumers do not have emergencies such as unexpected car repair, an upcoming trip for a school child, a new and necessary medication, a forgotten and suddenly found utility bill, or just a little cash to squeak by until payday. Because of these hard times, many folks have depleted their rainy day funds, and may have poor credit to boot. It is for folks such as these that there is a market for short-term loans.What Is a Short-Term Loan?Short-Term loans can bear any number of names: Cash Advance Loan, PayDay Loan, Unsecured Loan, and, of course, Short-Term loan. They are usually made in the amount of $100 up to $1500. The most common amount usually being around $500. Payback terms usually involve repaying interest, principle, and any fees within 14 to 90 days. You must be 18 to apply, in some states 21.Are Short-Term Loans Easy to Get?Most importantly, these lenders do not even ask about credit scores. Some lenders boast that they require no faxing of documentation and approval within minutes. This is not always so. If a lender cannot verify your credentials using online resources, you will have to provide documentation via fax or sending them scanned documents. If you do not have a fax or scanner , you can find facilities at the local library or at a print shop such as Kinkos.Will I Need a Lot of Paperwork?Documents required can include: Photo ID from a certified government agency (driving license, military ID, state ID, etc.). Bank statement or voided check. Pay stub. Utility bill (to prove residency). Social Security Number. Even with this inconvenience, money can still end up in your bank account within 24 hours. No direct deposit checking or savings account? Some lenders offer a reusable, preloaded credit card at a small fee of 5-10 dollars.Where Can I Find Short-Term Loans?For sheer ease and facility, it is easier to go online and punch payday loan or cash advance loan into your favorite browser. You will be rewarded with a plethora of online lenders eager to help you with your cash necessities. Since the market is rather crowded, you will be able to pick and choose from a number of lenders. Compare fees, interest rates, and payback terms. You will eventually find a lender that is comfortable to you.Is There Anything Else I Should Consider?Before you approach a lender, know exactly what you need the loan for and have a good estimate of that cost. If there are a number of things to cover, make a list. Do not ask for any more than what you strictly need. Stick to your agreed upon payment dates, amounts. Though short-term lenders do not rely of credit reporting agencies for approvals, they are obliged to report defaults.Why Is Everybody So Down on This Sort of Financial Assist?You will pay interests and fees on every $100 of the loan amount of around $25 to $35. A loan of $400 will cost you about $540. And, extensions are available. If one takes a loan of $400 and an extension is requested on the due date, the lender may say yes, but ask again for a finance fee of $100. After six months of this activity, the $400 loan will have cost $1000.Do not borrow more than you need, shop around, do not request extensions, pay back as agreed. Following these few rules will make a short-term loan work for you. And improve your credit rating.