Unless you’re a wealthy businessman like Bill Gates, chances are, there are times when your personal finances can turn unfavorable. Being broke is the last thing you want to be when you have personal expenses—and the more reason to avoid it when you have a family to feed. In times of financial struggles, you’ll be thankful that there are money lenders around, ready to provide you with a loan. If you’re hesitant about taking on a loan because of its possible impact on your current credit standing, your best option is to grab a short-term loan from a reliable lender like CashnGo.
Here are more reasons to convince you to try a short-term loan:
You Can Get Cash Quickly
Short-term loans are designed to get settled on a short-term basis, as its name suggests. That is why lenders make it easier for you to get the money you need to borrow at the soonest possible time. Whether you need cash for an emergency or personal expenses, a short-term loan can be of great immediate help.
Eligibility is Achievable
Since short-term loan providers aim to provide quick money to customers in need of cash, it’s only natural that they make their eligibility terms more achievable. Short-term lenders make the application process easier and faster by setting up eligibility criteria that many applicants can comply with.
No Need to Worry About Collateral
Collateral serves as a guarantee for the loan provider that the borrower will pay or that they’ll get a return of the loan even when the borrower fails to pay. You’ll notice that collateral is usually applied to long-term loans. Some short-term loans may require collateral too, but it’s not compared to what long-term loans require. Also, most short-term loans don’t even have collateral as a requirement for loan application.
Positive Impact on Credit History
Learning about personal finance statistics is a good way to make a sound decision when taking on a short-term loan or any type of loan. This will give you an idea of the current trends and the pitfalls to avoid that can affect credit history. Adding a short-term loan on your own credit history isn’t necessarily a bad thing. It’s because short-term loans are usually given in amounts that are more manageable to pay off within the set period. As a matter of fact, accomplishing to pay a short-term loan does a positive impact on your credit history
Commitment is Also Short-term
Once again, as the name suggests, short-term loans entail short-term struggle because you have to pay it along with interest in just a few months. You don’t have to worry about the future and how you can find ways to earn more income to pay a growing interest in case you fail to pay on time regularly. You are saving yourself from having a bad credit score.
There are Flexible Options
Another attractive feature that you can use with a short-term loan is its flexibility of payment terms. With a short-term loan, you have a couple of months until the due date. The loan provider will give you options as to how many installments you wish to pay the loan. You can either do it per week, per payday, or per month. It depends on your capacity. Most lenders would even prepare these options with a guide to show which payment term best suits you.
Interest Rates are Usually Low
Perhaps one of the most favorable benefits that you can enjoy with a short-term loan is the rate of interest. Short-term loans usually have lower interest rates compared to long-term loans. This means that you won’t be stressed with catching up with the interest rates. What deters most borrowers from loans is the possibility of increasing interest rates. This often happens when one fails to pay during the set payment dates. With a long-term loan, this can be excruciating as you’ll have to face a lot of uncertainties. When financial downturns happen, it’s inevitable to skip a payment or two, and this will lead to penalties. On the other hand, with a short-term loan, there’s lower interest, the amount borrowed is more manageable, and it only takes months to pay it off. That’s minus the stress and anxiety.
These are some of the most attractive benefits that you can enjoy if you apply for a short-term loan. Loans can serve as your relief from monetary stress. There’s nothing wrong with having a loan on your credit history, especially when you truly need the help. However, it should be worth remembering that taking on a loan also requires responsibility and due diligence in making payments. No matter how manageable a short-term loan is, if you don’t take responsibility with your payments, it can still harm your personal financial records—and that is something you should prevent from happening.