From 2014 to 2019, the payday loan industry grew for an impressive 269%. Every year, approximately 12 million Americans apply and get short term loans to deal with unexpected financial emergencies.
This type of loan is becoming more and more popular across the USA. With reasonable due dates and simple application process, the best short term loans help applicants remain on their feet when they need it the most.
Do you need a small loan? Would you like to learn your options and how to apply for one? You’ve come to the right place. Scroll down to discover all about short term advances, where to find them, and how to protect yourself from predatory lenders.
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What is a Short Term Loan
Any loan that is due within a year is considered a short-term loan. Unlike long term credit that people usually take to tackle expensive issues and investments, short term loans help with temporary struggles.
This type of credit involves a borrowed amount of money as well as interest rates. Each short-term loan comes with a due date, which usually is no more than a year from the date of obtaining the loan. The size of these advances mostly moves within the range between $100 and $5,000.
There are many different types of short-term loans, which make them appropriate for different situations. For example, consumers can apply for an online short term loan without credit check if they have bad credit. Also, there are offers suitable for those planning to buy a car, fix a washing machine , pay for a wedding, or fix their house.
Main Features Of Short Term Loans
Short term advances are quite extraordinary and in high demand. Before you decide to apply for one, make sure to check the main features of this type of loan.
- Low borrowing amount – short term loans are also known as small advances because their max amount never exceeds $5,000. In fact, on average, it moves around $1,000;
- Higher APR – these deals usually come with higher interest rates than regular loans. That’s why you should always compare short term loans and find the agreements with the lowest possible APR;
- Due date within a year – there’s no long-term commitment with short-term loans. More precisely, your loan term will never exceed 12 months;
- Mostly unsecured – even though there are lenders that provide secured short-term credit, most deals are for unsecured loans;
- Weekly repayment schedule – due to the repayment period, be prepared to cover weekly payments rather than monthly;
- Easy to get – obtaining a significant, long-term loan comes with rigorous checks and a long list of requirements. Short term advances tend to be easier to obtain, and there are even deals for Americans with bad credit too;
- Flexible – flexibility is a massive benefit of the best short-term loans as most lenders are open to negotiating a plan that works for you. They may agree on a custom repayment schedule or payment size, which is rarely the case when applying for long-term advances;
- High fees – late payment penalties, processing fees, and other charges often add up. This can make your short-term loan a costly adventure instead of a cheap solution;
- Temporary fix, rather than solution – finally, we must mention that short-term loans can’t be a solution for long-term financial struggles. They are great for those who need instant cash for an unexpected emergency. Those with regular economic issues may need a more permanent solution.
Types Of Short Term Loans
Those applying for a small loan for the first time may be surprised by the vast selection of offers and types. Our recommended low interest short term loans network has an offer for any occasion. Regardless if you want to pay for your daughter’s wedding or purchase a vehicle, you can easily find a suitable deal.
Personal Loans For Bad Credit
Having bad credit can ruin many things for Americans. From not being able to get a credit card to being rejected for loans, the list of disadvantages is long. Luckily, there are short term personal loans for bad credit you can get. Individual cash advances can be both secured and unsecured, depending on the offer. They are perfect for cash emergencies of any type and usually have reasonable conditions. You can use personal loans for anything, really. Visit the dentist, buy a new laptop, or organize a baby shower. It’s up to you.
Payday Loans For Bad Credit
In the US, credit score under 670 is considered a bad one. With such a rating, you may not qualify for regular advances, in which case you will need options for bad credit. Besides the personal loans for bad bank scores, you can always consider best payday loans for poor financial history too. Short term payday loans for bad credit tend to be small and have a two-week repayment time. Put differently, you take them when you need the cash and are expected to return the borrowed amount plus any interest in a lump sum on your next payday.
If paying back a lump sum seems impossible to you, then consider applying for an installment loan. This type of loan is repaid via scheduled payments, i.e., installments. These are, in fact, the most common type of advances. The best short term installment loans give you the necessary time to repay them, have reasonably sized payments, and no or low penalties.
Do you want to buy a new car or thinking about leasing ? Do you need funding with reasonable conditions? In that case, the perfect solution may be a personal car loan for bad credit . The main advantages of this type of a loan include lower interest rates, faster getting out of debt, faster access to money, and owing precisely as the car’s worth. Plus, a short term car loan is easy to obtain, even for those with bad credit. Keep in mind, though, that this type of credit often comes with large down payments.
Considering how expensive college has become over the years, it makes sense that more and more Americans need financial help to finish their studies. One of the fastest and simplest ways to get funds for getting your degree is student cash advance. Quick short term loans for students are temporary money boosts with low interest rates that are generally easier to pay back. Most options for students don’t even require a credit check. There are also offers for students with no or poor financial ratings too. So, regardless of your situation, you will be able to find something suitable.
Cash-flow gaps, unforeseen expenses, and unexpected investment opportunities are easily handled these days with the help of business loans. If you need a fast solution, the best short term business loans can provide the necessary capital. Just like the rest short-term offers, business credit is repaid within a year via a predetermined number of installments. Often, advances targeting businesses tend to have an even shorter repayment period between 90 and 120 days.
How Can You Apply for a Short Term Loan
Reading short term loans reviews and learning the different types of loans won’t help you unless you meet the essential qualification criteria. That’s right, only Americans who meet several basic requirements can apply and get a loan.
The exact demands may vary, yet the following ones are always relevant:
- Be a US citizen or a permanent US resident.
- Be at least 18 years old.
- Have a valid telephone number and email address.
- Hold your job for at least 90 days.
- Own a banking account in your name.
- Live in a state that allows short-term cash advances.
Besides these requirements, often, you will need a monthly income of approximately $1,000 after tax to qualify for a loan .
If you meet all the criteria, you can apply for short term loans online or go in person. By using websites that connect you to lenders, you can expect a response within 24-48 hours. So, you get your funds pretty fast and directly into your bank account too.
How Can I Get a Small Loan Fast
Do you need to get a small loan as fast as possible? No worries! Loan websites can help you get the money you need in less than a day. There’s no need to research fast short term loans near me or visit local banks. Instead, just use one of the options recommended in our table to find a suitable offer right now. You can expect your application to get approved within 24 hours, and the lender will send you a direct money transfer into your bank account. You won’t even have to leave your home.
How to Get a Short Term Loan With Bad Credit
Even though 67% of Americans have a good or better credit history, many US citizens still struggle with a poor or bad score too. If you belong among the 17% of Americans with a poor score of 580-669 or 16% with a bad ranking of 300-579, your loan opportunities are quite low. This is when the best short term loans for bad credit come into the picture. Such offers are specially designed for people with low banking scores, meaning they have reasonable fees, immediate (often guaranteed) approvals, and lower APR.
How Can I Get a $1000 Loan
Loans of $1,000 are tricky. Not many lenders offer them because they are too small to be profitable. Plus, even for a loan of that size, borrowers must meet specific criteria. Rather than visiting Credit Unions and banks, you can once again use one of the websites in our table. With their powerful search tools, you can instantly find safe lenders that will give a $1,000 loan to borrowers like you (age, credit score, income, etc.).
How State Loan Statutes Affect Your Options
You must remember that your exact options and limitations depend on your state of residence too. Each state has its own regulations regarding small short-term loans. Specific statutes are strict, while others are relaxed.
Here are examples of how short term payday loans for bad credit are regulated in several states. This will help you understand how they affect your options:
- Washington – Washington allows payday credit, but it mustn’t go over $700 or 30% of the borrower’s monthly income. The loan term usually varies between eight days and 45 days;
- California – Payday loans are legal in California, but cannot exceed $300, and the max loan term is up to 31 days;
- Florida – Maximum loan length in Florida is 31 days, while the minimum period is seven days. The max amount residents can obtain is up to $500, excluding fees;
- Texas – In Texas, the loan term depends on the loan size. So, credit of $100 or less last either one month for each multiple of $10 or, alternatively, six months. If the loan is more than $100, then the due date is one month for each multiple of $20 of the cash advance;
- Massachusetts – Massachusetts is one of the US states that doesn’t allow these loans;
- Ohio – Ohio banned payday credit and approved short term loans that cannot exceed $2,500. Moreover, their APR cannot exceed 20%, while their repayment time has been prolonged.
What is the Best Place to Get a Short Term Loan
If everything you read so far ensures you that a small loan is the right one for you, you may want to learn where to get one. There are, in fact, several places to get small personal loans with reasonable conditions. Whichever works the best for your individual needs depends on your expectations.
Credit Unions are nonprofit organizations that focus on helping the community. As a result, they often offer small and short-term loans with competitive rates. Plus, unlike banks, Credit Unions tend to approve more applications and don’t require good credit either. Trying to be helpful, Credit Unions often provide valuable help during the decision-making process. They have lots of loan alternatives on the menu too.
National banks may not be the best place to get a short term loan with bad credit. They tend to force borrowers to take more substantial amounts of money and aren’t willing to lend less than $1,000. Banks, as a general rule, have higher interest rates and stricter qualification requirements too. The only reasonable option here is regional and local banks, which may actually have a fair offer of short term and small loans. Plus, they will get you a person to work with you and explain your options.
Short Term Loan Websites
In the 21st century, the simplest and most convenient way to get the best loans is via the internet. The best short-term loans online come with an application process that takes no more than five minutes and excellent interest rates. A simple search tool empowers borrowers to find precisely the credit they need in terms of requirements, size, and APR. Moreover, websites that refer you to the best lenders give you the option to compare. Therefore, you can discover offers with reasonable fees, no penalties, and an excellent reputation.
Alternatives To Small Short Term Loans
Sometimes, even the top small loan offers may not be good enough for you. Regardless of the reason, Americans often need reliable alternatives to the best short term loan companies for poor credit. If you are in the same situation, there’s no need to despair. Instead, consider one of these options:
- Borrow money from family and friends – people close to you, and in a stable financial situation, may be willing to lend you some money for free (no interest rate). Make sure to take only the necessary amount and to pay them back on the agreed date. Otherwise, you risk ruining your relationship permanently;
- Ask your employer for help – if you are on good terms with your employer, you can ask them for help. Try negotiating a loan, which will be deducted from your future paychecks. Alternatively, ask to get a cash advance on your next paycheck if that’s enough to cover your emergency costs. After all, the best place to get a short term loan is from someone you know;
- Credit card – most unexpected expenses can be covered with a credit card too. Even those with a bad bank history can get a credit card for bad credit and make payments with it. In fact, these credit cards may also help you improve your financial rating in the long run;
- Get government aid – specific categories of people are eligible for government financial aid. Regardless of whether this comes in the form of help with rent or food stamps, it saves you money anyway .
Beware Of Predatory Small Loans
Small cash advances are fantastic and solve many financial difficulties. Due to their popularity, hundreds of lenders offer them. Yet, not all of those lenders have consumers’ best interests in mind. Instead, they offer predatory small short-term loans for poor credit, which should be avoided at all costs.
The best way to recognize such deals is to compare short term loans and notice unfair conditions. Reading a review or two is helpful too.
Here are the main features of predatory deals whose goal is to trick customers rather than help them:
- Extremely high interest rates;
- High fees;
- Strict penalties;
- Extra and hidden charges;
- Unusual payment periods;
- Brutal collection process;
- Aggressive marketing;
- Bad reputation among consumers.
Short Term Loans – Bottom Line
All in all, there are many solutions to your money emergencies. With our help, you can easily find the best short term loans on the market. Simply use the services of the expert websites that refer you to reliable lenders, and within 24-48 hours, you will have fresh cash.
Forget about endless worries and postponed issues. Get your dream car, visit the dentist, or pay for your degree. Anything is possible with the help of small cash advances that won’t indebt you more than necessary.
As long as you stick to legitimate lenders and avoid predatory deals, you are good to go. Just remember to borrow as much money as you can repay. Taking loans that you can’t pay back may damage your private credit score, generate additional debt, and cause further problems in the future.
Frequently Asked Questions