Short Term Financing: Borrow Responsibly
If you are in urgent need of cash, with a few days to go for your next pay day, you can consider the aid of payday loans to bail yourself out of trouble. There might be urgencies like paying off an unexpected hospital bill or else a car repair fee, with you having no cash in hand. Payday loans are a perfect source to turn to in these types of scenarios. However, you must ensure that you have exhausted all your monetary resources before taking their help. Even if you don’t have the instant cash in hand to clear off a hospital bill, you might have friends or relatives who are willing to help you. You might also have a substantial emergency fund to turn to. Make sure that all these possibilities are explored before you’re opting for the costly short term loans.
They are primarily provided for a short period of 15-90 days and carry very high rates of interest. This is the reason it is considered prudent to look for other monetary resources during financial emergencies. However, if handled with due sagacity, short term financing can turn out to be a very effective way of meeting your financial urgencies. As against a traditional loan with modest rates, payday loans are provided much faster and lenders don’t even check your credit history before approving. Since there are no lengthy credit checks involved, the money is approved fast and credited to your account within 24 hours of approval. Therefore, it becomes easier to meet urgent financial demands with the help of short term financing. It should also be kept in view that it is not easy to qualify for traditional bank loans with less than decent credit scores. Short term financing, on the other hand, does away with such difficulties, as a result of which even those with poor credit scores can take its aid.
Will You Qualify?
Though it is easier to qualify for short term financing, there still are some basic requirements that you need to fulfill. The money loans online today will not be sanctioned if you don’t meet the following requirements:
- You are at least 18 years of age while applying.
- You are a citizen of the country you are applying form
- You are able to furnish proof of a regular earning resource
What Should You Do?
Just because short term loans provide you with so many advantages (as listed above) you can’t really go on borrowing indiscriminately whenever need arises. In fact, it’s better to stay away from them until and unless there is a dire need at hand. The high rate of interest can multiply manifold even with a single default and you should be careful enough not to let that happen. Your motto as a borrower should be “Borrow only when in need and pay back responsibly”. Make sure that the first thing that you are doing after getting your paycheck is clearing off the debt in order to avoid a possible rollover.
Author Bio: Jacks Edison is a regular finance blogger who has expertise in writing about debt repayment and insurance.