Financial emergencies are often unforeseen. Sometimes, we have bills, small debts, and unexpected expenses, which can be hard to manage without surplus cash. Instead of asking around, you can consider a short-term loan. Lending services like Net Pay Advance offer installment loans and payday loans, which are incredibly useful for emergencies. The amount that can be borrowed isn’t huge, and the money can be paid easily on your next pay day, or in installments. Below are some quick things to know about short-term loans.
How to apply for short-term loan?
For both payday loans and installments, you can apply online, and the whole process of application, approval, and getting the money, doesn’t take more than two to three business days. Many online short-term loan lenders even assure approval within one business day.
What are the requirements?
To get a short-term loan, you must be 18 years of age or above. Secondly, you need to have an active bank account, must have valid identity proof, address, and should have a stable and reliable source of income. The best thing about payday loans and installment loans is the ease of access. There is no need for any collateral, and most lenders don’t insist on a hard credit check, as long as they are happy with the details furnished.
Factors to consider
Since short-term loans don’t require a great credit score or collateral, these advances are risky for lenders. As such, the interest rate is higher. You are also required to pay a processing fee, which is non-refundable and adds to the cost of the loan. The question is – Should you consider an installment loan or payday loan? The answer depends on your requirements. If you want more flexibility with repaying the amount, installment loans are better, but for smaller amounts, payday loans may work as an easier option.
How much can be borrowed?
Payday loans allow you to borrow $1,000 or less, while with installment loans, you can get up to $1,500. It also depends on the lender and the state you live in. Make sure that you are aware of the terms and conditions before applying for a short-term loan. If you do not repay the loan on time, you may not get a second loan, and it can impact your credit score. Some lenders do offer an extension for payday loans for up to 3 days, but again, that varies from one service to another.
Final word
Some types of online short-term loans can be repaid before the due date, but there is usually a fee for that. Make sure that you know the actual cost of taking a loan before you apply. It is absolutely critical to use such cash advances only when you need it. This is not a means to cover up for irresponsible spending. For a tough month, a payday loan will keep your expenses in check, but you have to plan your finances adequately to repay the amount in time.
Check online for short-term loan lenders now!
