Short Term Personal Loans

Short Term Personal Loans - Do You Seek Extra Cash?

If you are in need of a short term fix for your cash crunch, then consider looking at short term personal loans. There are many types of short term personal loans, including payday loans, bad credit short term personal loans, and more. There are several things you need to do when looking for loans short term and personal.

What are Short Term Personal Loans?

Short term personal loans are loans intended to meat an immediate, short term cash need, such as an unexpected bill, vacation, or other unique circumstance. Short term loans are taken out from a lending institution, and then repaid during the specified amount of time, usually one week to three weeks. Short term personal loans are not intended to finance large projects or fix a financial problem that is considered long-term, but rather to meet a cash crunch need.

Difference Between Short Term Loans and Payday Loans

Short term personal loans are very similar to payday loans. The main difference is that short term personal loans are not necessarily due on payday, whereas payday loans are due when the next paycheck arrives. A short term personal loan is going to have a short term, but not necessarily a due date on your next paycheck. Also, short term personal loans that are secured will have some form of collateral. Many times this is the title to your car or some other valuable that you might have. If you do not pay back the loan, the lender can repossess this item.

Types of Short Term Personal Loans

Since a short term personal loan is any loan with a short pay-back time, there are several different types out there for your use.

Bad Credit Short Term Personal Loan

A bad credit loan personal short term might be available for someone with a poor credit rating or history. If you have poor credit, you can expect two things when apply for short term personal loans. First, your interest rate will be high. You are considered a bad risk when you have a poor credit rating, and as such, you will pay more for the privilege of borrowing money. Second, you can expect to need some sort of collateral to secure your loan. This ensures that he lender will get their money back if you do not pay back your loan.

Short Term Unsecured Loans

If you are concerned with putting your valuable items up as collateral for your personal loan, then consider looking for a short term unsecured personal loan. With unsecured personal loans, you will not have to put up any collateral. You will be given a character loan, meaning that your good credit history will back the loan, as well as your personal guarantee that you will pay back the loan. Again, expect this to be a higher interest rate than a secured loan.

Secured Short Term Personal Loans

Secured short term personal loans are loans where you put some sort of collateral behind the loan. A car title loan is an example of a secured short term personal loan. If you do not pay back the loan, your possession will be taken by the lender. But since there is security backing the loan, you can usually get a lower interest rate!