No matter whether you are about to buy a new brake pad or plan to travel to see your sick relative, a certain amount of money can solve your problem really fast. Everyone at some point in their life probably needs a short term loan. When most people hear about short term lending one term comes to most peoples minds right away: “payday lending“. Not all short term lending options are payday loans however. A growing number of traditional lending options are open for those who need a short term cash infusion.
Short term loans that you repay over months versus weeks at 300% or more APR is a much better option for most of us. These loans are installment loans which means that you pay down the principle with each and every payment, while with a payday loan most of what you pay is interest. If you need money quickly but do not want to go through the pain of a payday loan you can opt for a short term installment loan.
Online is an easy place to find such loans. With these online lenders you can apply in as little as 5 to 10 minutes and if approved you could see your funds transferred to you in as little as one business day! Funds are transferred directly to your bank via ACH.
To qualify for these types of loans you need to meet these requirements typically:
Be a U.S. citizen.
Be at least 21 years of page.
Have a checking account with direct deposit set up.
Have held your job for at least 6 months, able to prove that you are currently employed.
Earn at least $1,000 monthly.
Do you have bad credit? No credit? There are options for you as well. You are not blocked from a short term installment loan, not by far. Peer to peer lending for example has traditionally been very forgiving for people with bad credit, but you will pay more interest than someone with good credit will. Also you will find that the fees for taking out the loan on top of the interest charged on the loan will be relatively high compared to regular secured loans, but they do not need to be as high as payday loans however. This is due largely to the fact that people with poor credit histories carry a much higher risk than lending money to people with secure incomes and good credit.
When choosing a loan provider online do be careful. Online is filled with thousands of these lenders, and many of them are scams are have hidden catches or exorbitant interest rates. Many of the sites you will go to are not in fact lending companies but rather they are loan brokers. Every time you fill out an application on a loan brokers website your credit score will take a dip as they will pull your credit. If you are going to apply for a short term installment loan do make sure that the website you are applying at is the direct lender and not a broker. You will also pay more for any loan through a broker because the lender has to pay the broker and the lender will make up for that loss by charging you more. When applying for a loan always deal directly with the end lender.