Do you need quick financial resources but are afraid of the potential consequences? There are conscious ways for you to tap into all the benefits of a short-term loan and make it sustainably frugal.
It’s common to struggle with money management at some point in your life, and this can happen for a range of reasons, whether that’s a period of unemployment, working in a low-paid job, or you’re faced with an unprecedented bill.
So what would be the solution in those cases? Thankfully, there are ways that you can boost your income if you’re struggling with the help of short-term and payday loans.
These loans are typically found online and can be used if you need money quickly to deal with an emergency. Below, we’ll take a closer look at this type of personal finance, and the benefits of using an alternative lender.
What is a sustainable short-term loan?
A short-term loan is a small sum of money that you can apply for to help you make ends meet if you’re faced with an unprecedented expense. Short-term loans are offered by alternative lenders that you can find online and are generally paid back within the space of around a month, to two years. Any loan that has a longer repayment period than this is referred to as a long-term loan.
Short-term loans arrive in your bank quickly, so you can use them to top up your monthly income if you are faced with an emergency, and you aren’t sure how you’re going to pay for it. Short-term loans come with a higher interest rate, so they may end up more expensive than other types of loans, but they are more accessible for a range of people.
Who can apply?
So, who can benefit from a short-term loan? As we mentioned earlier, you can use a short-term loan to help you with cash flow if you’re struggling. They have high approval rates and can be applied for easily online.
Those that are faced with emergency bills and expenses, whether that’s because of a broken-down car, a faulty boiler, or medical bills can take advantage of the money that can be accessed quickly and easily to get them out of difficulty.
Even if you don’t have a great credit history, maybe you’ve defaulted on loans in the past, or you’ve had difficulty managing your money and your credit score is low, you can still benefit from a short-term loan, as alternative lenders base their decision on affordability.
The benefits of alternative lenders
Alternative lenders are different from most traditional lenders like banks and other financial institutions. Traditional lenders can offer larger amounts of money, but the approval process is longer, and requirements are stricter.
When it comes to alternative lenders, there are a few benefits that come along with them that other lenders do not offer, such as:
When you apply for a traditional loan, it can take a while. You’ll need a range of documents and information to help the bank make its decision, as well as a healthy credit score.
In contrast, alternative lenders that offer short-term loans are based mostly online, so you can fill out your application with minimal information needed from the comfort of your own home. If you have any issues, you can get in touch with your provider almost instantly.
Provides money quickly
Alternative lenders are beneficial for those struggling with an emergency bill due to the fact they can offer money quickly.
Once you’ve applied for your loan online, the approval process is quick, and if you fill out your application correctly, you’ll most likely see money in your account in the next 24 hours depending on your lender. This means you can have access to additional funds when you need them most.
Wide range of options
There is a range of different types of short-term loans that you can choose from such as same-day loans, payday loans, and even bad credit loans, which is why people prefer to use these lenders over the most traditional ones.
They are incredibly flexible when it comes to your credit score, the amount of money they can offer, and repayment terms – which is why they can be used to help you when you need it most.