Short Term Personal Loans
Personal Loans are FlexibleA personal loan is one that can be used for an undefined purpose. The lender is not interested in why you need the money. Instead, they are going to base the decision on your financial situation which most importantly includes your ability to repay the loan within the specified period of time. If you are not interested in paying back the loan over the long haul, consider the short term option. This means that you can get the money necessary without having to worry about loan payments hanging over your head for an extended period of time.
Consider these points before you opt for a short term personal loan:
- The money can be used for everything from paying for college to home repairs and much more.
- The interest rate is going to be slightly higher than with a long term loan. Are you ready to pay a higher rate despite the fact that the term of the loan is short?
- Most short term loans are for an amount of $20,000 or less. Is this enough money? Or do you need more to meet your current needs?
- The majority of lenders that offer short term personal loans require collateral. Are you willing to “put up” an asset to secure the loan?
- Your credit score and credit history go a long way in determining whether or not your application is accepted or denied.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.