2022 Guide To Online Short Term Loans
With the current state of the economy, many individuals and families find themselves stretched thin when it comes to being able to financially support the ones they care about. With credit crackdowns, unemployment, inflation and rising costs of everyday goods, it is no wonder so many millions of individuals have sought out short-term loans as a temporary solution to get them by.
Online short-term loans, as the name suggests, are short in their duration. This means that you typically pay the loan off in any amount of time ranging from two weeks, up to a year or more. Most individuals who borrow these types of online loans do so for less than one month. Because they are short in duration, lenders don’t make as much money over time and thus fees and interest rates are higher than typical long-term lending options. As such, most people try to pay them off within a short time frame to reduce the total owed back in interest and fees.
What is the Best use for Online Short Term Loans
The best use for these types of financial fixes is for minor or major financial emergencies. Because of the higher interest rates and fees associated with shorter term lending options, you’ll only want to use these for immediate or necessary financial needs.
Many use these types of short term loans simply to aid in paying for the absolute necessities such as utilities, food, rent, or other items like gas for your car that you cannot go without until your next pay day at work (which could be days or weeks away).
Consider a situation where your car breaks down and you now need immediate and necessary repairs in order to get it back on the road. In fact, without your vehicle you cannot even get to work. In this type of scenario you likely were not able to foresee your car breaking down and therefore did not have funds set aside to handle such an ordeal. In this situation, an online short-term loan may be just the solution in order to provide you with funds to bridge the gap between now and your next paycheck.
Other scenarios that may be cause for short-term lending may include:
Preventing checks from bouncing
Preventing overdraft fees
Making a rent payment
What are the requirements of an online short term loan?
While requirements vary per lender and by state, the partners we work with may require the following in order to apply and/or get accepted:
Own a valid checking or other bank account
Be 18 years of age or older on the application date
Have an income source (job or other) of $1000 or more per month
Based on the information we have researched, most individuals have the best chance of getting approved if they are 20 years of age or older, are employed, and have proof of income ranging from $1500-$2000 per month.
What’s the difference or benefit of applying online vs in person?
Disadvantages of applying in Person at a “brick and mortar” location:
You have to find a location and drive to the storefront
You will need to fill out the paperwork while at the office if you want a loan now
You will have to schedule time to visit the store during office hours
You will likely only have access to ONE single lender, limiting your options
If denied you won’t be able to contact other lenders at that establishment and you will have to drive to a different lender and fill out yet another application if you wish to try for approval again.
Advantages of applying online:
You can apply online 24/7 at your convenience and on your own time
You can take your time applying from the comfort of your own home without being rushed
Your application will be presented to a number of lenders, potentially offering you more options and a higher chance of getting accepted
Funds will be delivered electronically to your bank account in as little as 24 hours or less
Only a single application is required in order to gain access to a number of lenders who will be given the chance to approve or decline your application.
What Are Other Considerations Before Applying For A Short-Term Loan
If you are applying online for a short-term loan, then chances are you need money and you need it now (or as fast as reasonably possible). Depending on your situation there may be a number of benefits to filling out an online application including:
Potential for obtaining funds in as little as 24 hours or less
Some lenders don’t require credit checks
Some lenders don’t mind bad credit or no credit
Repayment is easy and convenient
Online application takes less than a few minutes to complete
Applications can be filled out on a desktop, tablet or smart phone
Loans are fast, easy to understand and your information is secure
Approval or denial is almost immediate so you know what your options are
What Happens if I’m Approved for an online short term loan?
Good question. It is our #1 priority to help connect you with lenders who can get you money FAST. So once approved, things happen quickly and efficiently.
If you are approved, you will likely get an email notification that congratulates you and confirms the status of your application, payment terms, and estimated time of deposit of the money into the bank account you provided during the application process.
If you have any questions at this time, you can reach out to the lender 24/7 to get answers or clarification. Otherwise, just sit back and relax while you wait for your funds to deposit. Typical time to deposit is within 24 hours or less, though some lenders may be faster or slower.
How do I make a repayment?
Repayment is easy. Lenders want to make both getting you your money and repaying that money as simple as possible.
Lenders may accept a number of payment options including check, PayPal, bank/wire transfer, ACH, or pre-authorized direct deposit from your bank account. Regardless of the payment option the lender accepts, you will be able to make payment 24/7.