Short term loans are convenient and quick ways to get money in frenzy. You don’t have to worry about credit check because many lenders offer no credit or poor credit loans. If you have a stable income, you’re over 18 and you’re willing to pay off a loan in as short as two weeks’ time, you have a very good chance to qualify. A short term loan is also a very potent financial tool that can help you break the cycle of debt and say good bye to high interest credit card debts.

How does a short term loan work?

It takes only a few minutes to fill out the application form. In 15 minutes or less, you can get the result of pre-assessment. Lenders will ask basic questions with a soft enquiry such as your income and age and the amount you want to borrow. In most cases, when you apply for quick cash like 90 day loans, lenders will review the information you provided, ask for your income verification and send you a loan offer.

How much loan should you take?

Many lenders would offer you high amount of loan—but, if you don’t need all of it, don’t take the full amount. Lenders often extend higher amount of short term loans to earn more money from you in the form of interests. Stick to the original amount you intended to borrow—which must be limited to the amount of money you need to meet your current need so that you can easily pay it back as soon as you can.

How long is the repayment period?

Short term loans can be as short as two weeks to three months, or up to 1 year. Oftentimes borrowers pay back the money back in full within 90 days. If they receive their salary twice a month, they pay back a portion of the loan into bi-weekly too. The lender can break it into 3 monthly payments, 6 monthly payments or more depending on your income.

What fees are included in the monthly repayments?

The repayment amount includes the interest rate and fees on top of the principal amount of the loan, divided into several payments. How much you pay each payment period depends on the total cost of the loan, including the amount you borrow.

Make sure that you reviewed the terms of the loan, especially the loan amount and interests and fees before you accept the offer. Decline the loan offer if the interest and fees are too high. IT is important to enquire about the amount of interest before you apply, to know how much it will cost.

Why do people prefer short term loans that regular loans?

Convenience is one of the top reasons why borrowers choose a short term loan over bank loans and other loan products. It has minimum documentary requirements, and easy income verification process that would only take a few minutes to review. It is a very convenient way to get money in anytime you need it. Unlike business loans that require a business plan and extensive paperwork, you don’t have to show any proof or supporting papers to show where you would like to use the money. Even people with bad credit may qualify because there are plenty of loans with no credit check available.

A short term loan is a reliable and flexible financial resource in times of emergencies. You don’t have to wait for a few weeks unlike traditional loans that may take weeks or almost a month to get approved. In fact, you can access the money within 24 hours or a few more days and you can also pay it off in just a few weeks or months. Plus, you don’t have to give them some type of collateral—so if you missed payments, your assets are still safe.

How should I choose a lender?

There are multiple online lenders promising cheap interest rates, low fees and high amount of loan. But, don’t be fooled, some of them are either scams—asking for advanced payments before releasing money, or those that charge hefty interests and fees, plus hidden costs that could probably put your deeper into debt.

Look for a credit provider with the following characteristics:

  1. It provides equal opportunity for affordable loans for people with good or bad credit. A stable lending company profits from offering quality products and reliable service, not because it squeezes money from its borrowers.
  2. The loan process is hassle free. If you qualify, the lender would tell you right away and will make the money available in less than a week. It has a reliable screening system and credit evaluation criteria that allows it to screen credit worthy applicants as quickly as possible.
  3. It offers affordable interest rates, knowing that all borrowers—those with excellent record or those with bad or no credit record at all must be given reasonably priced loan products to help them out in times of needs.

Enquire with Australian Lending Centre to receive professional advice.