Our Guide to Short Term Loans Made Easy
December 02, 2020
Many people associate loans as a long-term process, one that typically involves paying for a 30-year mortgage. Others like auto loans have a shorter timeframe, lasting for at least five years to repay. That’s why it’s a complex process that requires careful thought and planning, but what about emergency cases that require instant cash?
Living from paycheck-to-paycheck leaves little-to-no room for unexpected expenses like medical fees, car repair, home renovation projects, and other more. For those who need quick cash to cover these financial surprises, short term loans might be the ideal choice for you.
What are Short Term Loans?
A short term loan has a payback period between a couple of weeks to a year, most of which you can obtain from a bank, credit union, or online lender. What makes it an attractive choice compared to other loans, aside from its quick payoff, is that it doesn’t require any collateral for approval.
There’s no need to worry about your home equity, making it a feasible option for young adults who don’t have enough savings to show for. Moving forward, there are three type of short term loans to consider:
- Doorstep Loan – This involves paying the loan in weekly installments, wherein an agent will visit your home to discuss the loan after completing your application process. If they see you can afford to pay the amount you borrowed, you will be accepted on the spot.
- Payday Loan – This refers to a type of loan with a high interest rate, on that involves paying the borrowed money using the next paycheck.
- Online/Installment Loan – One of the most convenient type of short-term loans, the whole process is done online, including the payments. You have the option to make monthly payments, so long it will be complete within the year.
How to Get a Short-Term Personal Loan
Another benefit of getting a short-term loan is that it’s a straightforward process that only requires the borrower to check the credit score. This can make or mar your chances of approval, but lenders typically allow for some leeway in many short-term loan cases.
You also need to submit important documents like your driver’s license, paystubs, W-2 tax forms, and bank statements, all of which you can submit online.
The Bottom Line: Increasing the Chances of Approval for your Short Term Loans in Three Easy Steps
Short term loans are an excellent option for those who need quick cash to cover for emergency expenses. While the drawback is that it comes with a high interest rate and costly fees, it still offers an opportunity for those with less than ideal credit score rating.
It’s also a flexible option that leaves plenty of room to adjust the terms of the payment plan with the exception of payday loans, making it ideal for situations where you’re in a financial pinch.
Why Choose Us?
Applying is a loan that can be a time-consuming and complicated process. We can still help take the drudgery away from achieving your financial needs with our smart online application systems at Hoopla Loans.
If you’re looking for fast, easy loans in South Africa, we’re an ever-evolving online loan broker that can bridge the gap and help you build an impressive credit history. From affordable loans, bad credit loans to emergency loans, we can provide the coverage you need to obtain your goals.