Types of Loans
Short term loans offer a great solution to immediate financial problems. The best thing about short term advances is that you don’t have to wait for months or weeks to obtain the loan, making these credits the best solution to urgent financial needs. In addition, since they are short term, you won’t be burdened by it for long periods of time.
While short term loans offer great opportunities for you to solve your financial problems, understanding what these credits are is essential before jumping into this solution. Keep in mind that they come in many forms or types, and not all types may fit your financial needs. Here are the various types of short term loans.
Payday advances, also known as cash advances, are the most popular type of short term loans. This type of short term advance is secured against your paycheck. The most important requirement is a proof of income.
Unlike other types of loans, this type of short term advances offer small amounts, ranging from $100 to $1,000 depending your salary. And like other unsecured loans, you can obtain this type of loan even if you have bad credit rating. No credit check is required to obtain this type of loan. What’s more, provided that you have a stable source of income and can present the other basic requirements; you don’t have to wait for weeks or months to get your loan approved. In most cases, you get approval in as little as 24 hours to 48 hours. Today, you can obtain payday advances online through online payday advance lenders.
You can get emergency cash from the bank or various credit unions. Typically, with these type of short term loans, you can borrow small amounts but definitely larger than how much you can obtain with payday advances. Emergency cash advances are perfect solution to financial troubles due to unexpected medical problems, home repairs or even car repairs.
Other types of short term loans can provide you with bigger amounts of cash. If you are looking for larger amounts, then a Bridge Loan would be your best choice. This is typically taken if you have pending expenses but expect cash inflow within a few weeks. For example, if you intend to buy a house and your old one is still in the market, then you can apply for a Bridge Loan to help you with your purchase. Short term loans like this are usually backed up by collateral.
Short term personal loans are a great source of funds and if used correctly, they indeed offer great solutions to your immediate and short-term financial problems. The good news is that these loans are also offered by online lenders. However, because there are hundreds of online lenders of short-term loans, knowing how to pick the right online lender is important for you to find the best deals—which are, of course, packages that charge low interest rates and offer several perks.