When you are short of money to address a personal expense, you can opt for a short-term loan, which allows you to respond quickly. It suits moments when you face an emergency and cannot wait until your next paycheck. You can borrow different amounts depending on your state laws and the conditions the lender uses to evaluate applicants.
These short-term loans are available at direct lenders online, and you can submit your application on your PC or mobile device. All you need is to provide several documents, including a government-issued ID and proof of income. Often, short-term loans are based on your income, so you don’t need to provide collateral. Also, your credit score doesn’t have to be excellent, as the company considers your income the primary point of reference to decide if you qualify.
What Is a Short Term Loan?
It is a loan that you get and repay in less than one year. When you apply through a direct lender, you can get the money quickly online. Most organizations approve your application in under 15 minutes and transfer the funds to your bank account within one business day. This type of lending offers the best solution when you deal with an emergency and your paycheck is weeks away.
But before you apply, ensure you understand the interest charges and terms that come with the offer. Defaulting on title loans or any other short-term loans could lead to losing your asset or attract penalties.
Reasons to Apply for a Short Term Loan
If you plan to get a short-term loan, it’s good to understand the financial situations where this option would make the most sense. Some common reasons people apply for these deals include:
What Are the Advantages of Short Term Loans?
People apply for short-term loans online for different reasons. Most of them are inspired by the convenience and benefits the offers imply. Here are the top advantages:
What Are the Interest Rates on Short Term Loans?
Short-term loan rates vary depending on the type of offer. Often, shorter terms mean higher monthly payments, but compared to options with several installments, you will pay overall less interest. On average, you can get an interest rate of between 8% and 25%, depending on the product you choose.
This means applying for $1000, you’ll owe between $1080 and $1250 after 30 days. The advantage is that the interest rate does not vary throughout the loan’s term.
How to Apply for a Short Term Loan
Applying for online short-term loans is simple. First, you need to meet the following requirements:
With all the documents required, you can follow this procedure to apply for the loan:
- Submit an Online Application
- Feedback From Lender
- Sign Documents
- Get Cash
Open the lender’s website and look for the form. Make sure you have typed everything correctly.
The company will review your details and return feedback. If they approve your request, you’ll move to the next step.
Read the agreement and sign the documents to confirm you agree with those terms and conditions.
The last step is receiving the money. This takes up to 24 hours from the point the lender approves your request.
How Quick Is Short Term Loan?
The approval for short-term loans from direct lenders can take less than 20 minutes, depending on the organization. Most companies will respond in 10 minutes after the applicant submits a request.
How Can I Get a Short Term Loan With Bad Credit
Your credit rating does not impact your eligibility. It’s possible to get a short term loan with bad credit, as most companies want to know you can repay the debt, so they check your income.
Where to Get a Short Term Loan
MaxLoan offers one of the most reliable platforms for short term loans online. The company guarantees instant approval, and your information is stored securely and never shared with third parties. Also, MaxLoan boasts great rates to help you manage your debt better.