Short-Term Unsecured Loans: Fast Access to Collateral-Free Cash

When a financial emergency develops suddenly, the worst thing to have to deal with is the waiting period for loan approval. Thankfully, approval rarely takes more than a couple of days, but with short-term unsecured loans, approval can be given, and vital funds accessed, in less than 24 hours.What is more, it is possible to get approval with no collateral provided. This has two great advantages: firstly, there is no desperate rush to find something to use as collateral; secondly, there is no risk of losing an item of worth due to a missed repayment.In fact, being a short-term financial arrangement, the key basis of approval on this unsecured loan rests on the ability to repay the loan directly from a paycheck. Of course, there are criteria and conditions that need to be met.Typical Loan CriteriaAccessing cash fast is essential when financial emergencies crop up. The problem is that, even if fast approval is promised, strict criteria must be satisfied if there is to be any chance of getting a short-term unsecured loan. These are pretty basic criteria so there should be little problem in meeting themWhen financing is unsecured it means it is necessary to get approval with no collateral. This means that lenders can only rely on the income of the applicant to recoup their investment. This is why an applicant needs to show they have held steady employment for a minimum of 90 days before applying.Also, the lender needs to be provided with checking account details, also held for at least 90 days. This benefits both parties, since funds can be transferred to the borrower directly, while repayment can be taken out automatically too. For unsecured loans, it is also necessary to provide details on age, and nationality or visa status.Take Care With The TermsOne of the great advantages of getting a short-term unsecured loan is that the whole application process is so fast, but it is important to carefully choose the terms of the loan when filling out the online application form. For the most part, these forms are easy to fill, but some preferences entered can directly affect the repayment terms.The secret to getting approval with no collateral is not over-extending the debt. So, when asked to choose the required sum, be sure to click the minimum amount needed, and when asked what period the repayment should be completed in, bear in mind the interest rate. If it is high, then a short-term repayment can make life very difficult.A short-term loan is best suited to smaller sums ($100 to $1,000), and with lenders charging rates of between 5% and 15%, a very large lump sum could be taken out of the next paycheck. And remember, the longer the term of the unsecured loan, the more interest is actually paid.Check the Little DetailsIt might seem that careful budgeting and modest calculation will guarantee a manageable loan agreement, and to an extent that is true. However, if the small print on a short-term unsecured loan is not read and understood, it can make the agreement extremely expensive.There can be severe penalties for late repayments, and while approval with no collateral means the borrower cannot lose any possession, there is little reprieve when applying for another loan. Even with a respectable rate of 7%, a loan of $1,500 would require a single repayment of $1,605 to clear it - a large sum from a single paycheck.Still, if it is repaid on time, the terms of a second unsecured loan, and even a third, can be vastly improved. And, in the process, emergencies are dealt with effectively, and a steadily improving credit score can eventually lead to a stronger financial status.