You ever been in a bit of a jam and needed some extra cash? This has likely happened to everyone. Forgetting to budget for HVAC maintenance appointment, not having enough money for increased gas prices, or some other unforeseen emergency can leave you stranded. Depending on your circumstances, gaining access to cash quickly to handle such problems may not be easy. That’s where applying for a short-term loan comes in.
You could go to a local bank and apply for a loan there, but it can present some inconveniences. You’d have to visit during local business hours which may not coincide with your schedule. A short-term loan, on the other hand, can be applied for online. So, whenever your emergency arises, you can quickly start the process of receiving cash.
No Credit Checks
Another problem with applying for a bank loan for many people is the credit requirements. In order to receive approval, you must have a score of 650 or higher. Not everyone is in this position creating the need to ask a co-signer or simply forego the loan altogether. Online, they have installment loans for people with bad credit. More people are approved simply because these lenders don’t require a credit check for approval. As your credit score can also drop from inquiries and new accounts, the fact that online lenders don’t check your credit or place the account on your history benefits you. (Unless of course, you don’t repay the loan.)
If you try to apply for a loan at the bank and are successful, it could still take awhile. Not only are you required to provide a lot of financial documents which can take time to review, but it can take 3-5 business days or longer to receive those funds. An online personal loan has a quick approval process and you can get money in your account in just one business day.
Few Eligibility Requirements
Banks require their applicants to go through a tedious financial background check in order to get approved. They want to review your credit history, pay stubs, income taxes, financial statements, list of assets, and more. You are also required, in most cases, to have collateral such as a home or vehicle you own outright which can be leveraged if you don’t pay the loan on time. Most online short-term loan lenders only require that you be 18, have a valid checking account, proof of address, and a verifiable income which meets minimum standards.
Flexible Repayment Options
When you’re in a tight spot, sometimes it can take a while to get back on your feet financially. You need as much of your income as you can to manage your expenses. So, repaying large amounts would only make matters worse. Installment loans online are an effective solution. Applicants can opt for extended monthly repayment options that allow them to stay on budget.
You never know when you might need a little extra money. When you do, bank loans may not be the most effective solution. They require a perfect credit history, mounds of paperwork, collateral, and the process can be time-consuming. Online installment loans provide a faster solution no matter what your financial needs, assets, or credit status may be.