Short Term Loans Online
Have you ever been cruising along on your bike when suddenly, you start to feel that familiar wobble that means you have a flat tire? Or maybe you’ve wandered into your basement after a long day of work and noticed a water stain starting to form on your ceiling.
Regardless of the specifics, instances like these can sometimes force you to shell out big bucks to deal with your emergency expense and could ultimately spell disaster for your bank account. This can especially be the case when your savings are running low and you don’t have an emergency fund at the ready.
One of the key aspects to keep in mind when you’re dealing with an emergency expense is that you’re going to want to deal with it right away. For starters, the general nature of emergencies is that they need to be taken care of right away, but even in instances where you have a bit more time at your disposal, the longer you wait, the worse the problem may get.
What are Short Term Loans?
Like we’ve highlighted, short term personal loans are often meant to be used by people facing an emergency expense without the savings on hand to deal with it. In many cases, they have relatively quick application processes, which is especially true of online short term loans. This is an important quality, as you’ll generally want to get your hands on funds quickly when dealing with an emergency.
As the name suggests, these loans are meant for short term expenses. They shouldn’t be used for recurring bills or any long term financial plans. Depending on the financial institution offering or servicing the loan, you may be able to get funds (if approved) as soon as the same business day that you apply.
Potential Benefits of Online Short Term Loans
When it comes to applying for small short term loans, there are generally two routes you can take. The first is to apply for a loan in person, which may be with a storefront lender. The second is to apply for short term loans online. With these loans, the borrowing process takes place primarily (and often entirely) online.
Why would you opt for an online loan? Well, like we mentioned before, the application process tends to be fairly quick and streamlined. It’s also generally a convenient process, as you can apply from anywhere you get internet, and you can sometimes even apply 24/7. On top of that, the process of doing research on the details of different types of short term loans online is straightforward, fast, and easy.
Types of Short Term Personal Loans
Whenever you make an important decision in regards to your finances, one of the most important things you can do is to do the proper research beforehand. Applying for a loan is not something that should be taken lightly, and it can ultimately have a big impact on your financial situation. For this reason, you’re going to want to research your potential options and understand the implications of taking on debt.
To help you get started, we’ve gone and broken down some of the basic components of certain types of common short term loans that you may come across as you learn more about these loans. While there are more types of personal loans than what you’ll see below, these are a good starting point in your education if you’ve never had to borrow money before.
What Types of Same Business Day Loans Are Out There?
While same business day loans are meant for emergencies, that doesn’t mean you should apply for one without doing the proper research ahead of time. With the steep interest rates and high fees that can sometimes accompany these loans, you’ll need to make sure your finances are in the right place to handle the repayment phase.
Another important aspect to research is the different types of loans that are out there. After all, you’re going to want to make the right choice for your particular situation, and part of that is knowing what loan options may be available to you. To help you get started, here are three common types of same business day loans.
1. Lines of Credit
If you’re looking for a flexible personal loan option, a line of credit loan might be one option for you. One of the things that makes it so flexible is the fact that it’s a form of revolving credit. What this means is that if you get approved, you’ll have the ability to borrow funds continuously from a specific credit limit without having to submit a new application each time you need money. This will be contingent on you having available credit and your account being in good standing. The interest and/or fees you will pay will be based on how much of your line of credit you’ve used, not the total amount of your line of credit limit.
2. Installment Loans
Short term installment loans work differently than lines of credit in some key ways. Instead of being given a credit limit to draw from, you’ll get a specific amount of money in a lump sum, if approved. You’ll then have to pay back what you owe, but not all at once. Instead, you’ll have a series of scheduled and equal payments laid out ahead of you that you’ll need to make over the course of several months, or even several years depending on the type of installment loan you’ve applied for.
3. Credit Card Cash Advance
If you need a quick short term loan to help you out in a bind, a credit card cash advance might be a speedy option to stem your immediate cash flow issue. These work by allowing you to withdraw cash from an ATM using your credit card instead of your debit card. Just remember that these two things aren’t identical transactions. For starters, you’ll need to pay a fair bit of interest on the money you withdraw, and there may even be some fees tacked on. You should also keep in mind that the interest you’ll accrue will start to build up immediately, unlike a regular credit card purchase. Overall, this can be a pricey route to take when you need to borrow money so make sure to only go for this option when you know will be able to pay back what you’ve borrowed.
When to Consider Applying for Small Short Term Loans
As we’ve gone over, the short term loans we’re discussing here should only be tapped into for emergencies. They can be useful because of the potential speed of the application process (particularly with online short term loans). However, because of the high fees and/or interest rates that usually come with them, they should be used carefully. In order to use them properly, it’s important to have an understanding of what constitutes an emergency situation. While this can vary from person to person, some general things can include:
- Unexpected but essential car repairs
- An unforeseen trip to the emergency room
- Unanticipated home repairs
You should also make sure you understand when you shouldn’t use a short term loan, which can be for things like entertainment, shopping, vacations, and more.
Reserve Short Term Loans for Emergencies
We understand how an unexpected expense can place a lot of strain on your finances and your overall well-being. To help you avoid this stress, it can help to put together an emergency fund to help you handle future instances like this. The issue is that this is easier said than done and generally takes a long time to do.
In the interim, if you find yourself in need of extra funds, small short term personal loans may be able to give you the boost you need. If you do your research, don’t overextend your finances, and pick a borrowing option that’s right for you, you may be able to get out of the sticky financial situation you’re in relatively unscathed!