What You Need To Know About Short-Term Unsecured Loans

short term unsecured loans approval loan guide

Many situations in life require immediate cash. Some of the most common situations that require quick cash are automobile breakdowns, bill payments, medical emergencies, and bail bonds. Those situations and many more may fall upon any person on any day. Short-term unsecured loans may be the solution that the individual needs for those situations. Here's some information about these loans and what people need to know about them. 

About Short-Term Loans 

Short-term unsecured loans have two main qualities about them. First, they do not require any type of collateral for approval. In other words, an applicant will not have to put his or her home or car up for collateral to gain approval for such a loan. Lenders use other criteria to determine whether a person is eligible for a short-term advance. 

Another quality of a short-term loan is that the repayment term is short as compared to other loan types. The borrower may have to pay back the advance within 14 to 15 days, for example. Other short-term loans give the borrower a bit more time to repay. Some have known to have a 30 day or 60-day lifespan. Special short-term advances may even extend the borrowers up to 90 days to repay their loans. Short-term advances hardly ever last any longer than that. 

Types Of Short-Term Loans 

Several types of short-term loans exist for people to obtain. One of the most popular loans types is the payday or wage day loan. These short-term advances go to hardworking individuals who can pay them back when their next paycheck comes. 

Lenders do not ask for any collateral for the advances. They have minimum qualification criteria, and they usually make decisions rather swiftly. A person who needs the cash can have an answer in a matter of hours, for example. 

Title loans are another type of quick short-term loans that people can get. Some consumers view them as "secured" because the vehicle owner has to allow the lender to place a lien on the vehicle until he or she repays the advance. Title loans usually have a life span of about 30 days, and lenders repeat loans for people who pay off their debts quickly. 

Many other types of loans exist. An individual can ask for help from his or her banking institution or credit union to see if they offer short-term loans. The interest rate might be a bit more consumer-friendly if the individual takes that route. 

Qualifying For Short-Term Loans 

To qualify for a short-term loan, the applicant must be at least 18 years of age. That is the number one requirement for anything that requires a contract signature. Some lenders require the applicant to have a bank account and debit card that has been in good standing for at least 90 days. Furthermore, the individual should have a stable source of income from an employer that is not likely to change. Usually, the applicant must also meet income requirements to qualify. Most short-term quick cash lenders do not check credit scores, but there may be some that do. 

How To Apply for Short-Term Loans 

Applying for short-term loans is easy. The person must visit the website and complete an online form to apply. The prospective lender will get in touch with that individual quickly, and the process will begin shortly after that. 

Now you should have a firm grasp on the concept of short-term loans. If you feel confident about your eligibility, you can apply for one of these loans immediately. You can use the funds for the goal that you have to meet.

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