Short term loans are there whenever you need a small sum of money for your emergencies. It is a great thing to know that if something unexpected happens and you don’t have the cash, you can rely on a lender to help you out of a tricky situation. This kind of loan is becoming more and more popular in Australia, thanks to the fact that is it easy to obtain and fast to get rid of. So should you consider getting a short term loan?
Short term loans are like money you borrow from a friend, but it comes with some fees and limitations. Do you have any other ways of getting money fast? If not, then this might be the best solution for your problem.
What Are Short Term Loans?
Short term loans come with a value between one hundred and ten thousand dollars. The attractive part of the short term loans is the fact that they come with a short payback period. A short term means that you won’t pay too many interest rates and fees.
Anyone can have access to short term loans, even people who have bad credit. The loan terms can last anywhere between sixteen days to a year. The loan is easily approved, and the lending process is quick.
Who Should Consider Getting A Short Term Loan?
The main eligibility criteria are not very complicated. You need to be at least 18 years of age and have proof of a regular income. Don’t forget about that 100 points identification check.
You can use this loan however you see fit. Some use this loan to pay a pile of bills that they couldn’t get under control. Others use this type of loan to pay unexpected fees or bills.
The most attractive thing about getting short term loans is that you don’t have to dig into your money at this moment to pay something. Do you have to pay something until payday? No problem, a short term loan can easily help you with that.
Don’t want to use your credit card or cannot use it to pay for something? Short term loans can do that. Did your employer delay your payday? Don’t wait; apply for a short term loan. Want to go on a shopping spree but don’t have the money? Request a short term loan.
You can use a short term loan to finance your holiday if the time is right. Don’t wait until you save enough money. You might miss an opportunity by not acting now.
Another advantage is that a short term loan can help you fix that bad credit you have – provided that you make the payments on time. It really is a win-win situation. Use the money for your emergency situation and also improve your bad credit.
If you have bad credit, then it is a bit more challenging to get a loan. But do not weep, since plenty of lenders will approve your application if you bring collateral. They need some reassurance that the loan will be paid. Completely understandable, don’t you think?
Since technology is used in every domain to make our life easier, banks came up with a very interesting idea to simplify and accelerate the process of applying for a loan. Nowadays, you can apply online for a loan, from the comfort of your home, from the office or your car, and the money is quickly transferred into your account.
Types of Short Term Loans
When it comes to short term loans, you have to choose between payday loans, unsecured short term loans, and secured short term loans.
- Payday loans are loans that can go anywhere between one hundred and two thousand dollars.
- Secured short term loans require that you connect an asset to a loan in case you default.
- Unsecured short term loans require no assets, but the requirements are stricter than the secured ones.
Things to Look Out For
Be careful of lenders that will approve a short term loan that you cannot afford. Those irresistible offers might do you more harm than good. Also, because they have a short term of payment, there is a catch: they come with high rates and fees. So, there is a risk and you might find yourself in bigger trouble than before.
Short term loans can be of much help, but the actual result, good or bad, is only decided by you. Should you consider getting a short term loan? If you want to use them to pay debts every month resulting in an unhealthy financial habit, then you better stay away.
If you just need a bit of financial help, then you can contact us on 1300 138 188 or fill out our enquiry form for a free consultation. With us, you can find a loan with accessible fees and rates. Don’t hesitate to call us if you have more questions and ask our experts to help you choose the best option for your financial situation.