Are you currently in need of some money fast? Is your next paycheck a little too far and are looking for some money for an emergency? Well, you should consider getting a personal loan for financial assistance until your next paycheck.
Currently, there are different types of short-term loans to help you meet different financial obligations effortlessly. Here is what you need to know about short-term loans and whether or not it’s a good choice for you.
Are Cash Advances Short-Term Loans?
Some credit card companies provide cash advances where you can get the cash from a bank, an ATM or any cash lending organization. Note that, with this option, you will pay very high interest rates, a littler higher than the regular credit card rates.
Once the money is withdrawn, the interest rate increases immediately. However, you can enjoy the huge advantage that a cash advance is very easy to get. With a higher credit score, you can get a higher cash advance. However, you should only apply for it when there are no other sources of cash.
Installment Loans Have A Longer Term
An installment loan is the type where the interest paid is the same amount as the loan previously borrowed. The repayment should be done at scheduled intervals over a fixed period. You can choose this period depending on your needs but it can be as long as 30 years.
Installment loans are safer and more affordable than payday loans or title loans. Look for a local loan provider when looking for this type of loan. When you apply for the installment loan, you can expect the amount in your account in as little as 24 hours.
Are Payday Loans Similar To Short-Term Loans?
A payday loan is the quickest way to receive instant cash. If you have an emergency, a payday loan is the best way to get the cash you need immediately. Here, your credit score isn’t necessary. However, the interest rates are considerably higher than regular loans at the bank.
Since the lenders don’t ask for collateral when giving out the cash, the interest rates act as the collateral, especially when working with people with a bad credit history. Simply put, you need to provide your personal information, proof of income and the right documentation for the best results.
When you apply for a payday loan, you can choose an amount that you are able to repay by the next payday without any hassles.
Despite the type of loan you apply for, always look through the terms and conditions. That way, you can assess the authenticity of the loan provider. You need to find the best lender near you and always choose an amount that you can repay comfortably. If possible, make sure the lender deposits the money into your account immediately or within 24 hours for the best results.