Benefits of Using Short Term Loans

by News Guy on October 1, 2012

(Guest Post)

In general, short term loans get a lot of bad publicity and they should only be used as a last resort. That being said, not enough people take about the benefits of using short term loans either. If you’re thinking about getting a short term loan but can’t decide yet, you might want to have a read of some of the benefits that we’re about to mention below so that you can decide whether a wage/payday loan is right for you or not. Here they are:

Speed – In the past, if you needed to borrow money you’d have to wait at least a couple of days before knowing whether you’ve been approved for a loan and then maybe another week or two to actually receive the money. However, thanks to short term loans things have changed. For example; if you apply for a payday loan in the UK then you could have the money that you borrowed within just hours of applying for the loan. Nearly all payday lenders will pay you within 24-48 hours but many will pay you on the very same day which is brilliant if you need the money in a hurry!

Easy to Apply For – Once again, in the past you would have to spend a long time filling in forms and so on to apply for a loan. However, short term loans are usually much easier to apply for. Most of the time you’ll be able to apply for a loan on payday loan sites like within a matter of minutes because they don’t ask for too much information about yourself. For example, the Paydayloansuk site we mentioned above only need some basic information about you such as your name, date of birth, address etc.

Collateral – Pretty much all short term loans don’t require any collateral from you which is another bonus. If you’re not sure what collateral is, it’s basically a way of the lender getting the money that you owe them if you don’t pay back the money that you owe them. For example; if you have a mortgage and don’t pay back the money then the lender will be able to take your house from you in order to get back the money that you owe them. However, with short term loans there usually isn’t any collateral so if you don’t pay back what you’ve borrowed none of your possessions will be taken away from you.

No Credit Check – Some short term loans don’t even check your credit rating to see whether you have a good credit rating or a bad credit rating. This is great news if you have a poor credit rating since in the past you would’ve never been able to get a loan with any lender, but thanks to some short term loans you’ll have the option to borrow money again. However, if you have a good credit rating it might be worth checking to see if you’ll be able to get some sort of discount on the APR that you’ll be paying.

As always though, it’s smart to do your own research and only use payday loans as a last resort.

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