Amazing Benefits of Short Term Loans over Long Term Loans

Short term loans are available only through certain lenders. Most lenders, especially traditional lenders, like banks, offer only long term loans. There are many great reasons to get those kinds of traditional loans, but they aren’t right for most people. You may be surprised at how accessible short term loans are, and how much better they can be for people just like you.

Short Term Loans, Long Term Loans, What’s the Difference?

If you’re not so experienced with getting loans, this may be a mystery to you. But, if you know generally how loans work and always thought you could never afford them, you need to know what short term loans are. The term of a loan is the period of time from when you get the cash to when you repay it completely. For long term loans, like a car loan or a mortgage, this can be months to years. For short term loans, the period is much shorter, like a week to a month.

You Can Actually Afford Short Term Loans

One of the best benefits of short term loans over long term loans is affordability. All loans cost money because you have to pay interest on the amount you borrow. The longer the loan term, the more you will pay in interest fees. A long term loan will have you paying interest for years. A short term loan will cost you interest for a week or two. Some people see the high interest rates on these short term loans and assume they are too expensive. The truth is that, although the rate is high, because you only pay it for a short period of time, it is actually much more affordable than lower rate, long term loans.

Short Term Loans Give You More Opportunities

Some of us will never be eligible for long term loans. Because they are larger loans with longer loan terms, these big loans are hard to get approved for and many people get rejected. With short term loans, it is much easier to get approved, so you end up with more opportunities you never realized you had. When you think you can’t ever get a loan and then you find out you can actually borrow a few hundred dollars here and there, your life changes for the better. You can pay bills on time, take care of your family, and maybe even get a few perks just for you.

With Short Term Loans, You Can Get Cash Fast

Another amazing benefit of short term loans is that they provide cash faster than with other loans. It starts with the whole process of applying and getting approved. With short term loans this is a fast and convenient matter of simply filling out a short application online. Compare that to going to the bank for a few hours. Short term loans also provide the actual cash you need much faster. You can apply one day and have the money the next. There are so many advantages to short term loans, you will never turn to the bank again.

Amazing Benefits of Short Term Loans over Long Term Loans By Eric Knapp - 5/30/17