Short Term Loans. Advantages and Disadvantages

If you have an opportunity to cover you loan debt in a short period you may require short term loans. Short term loans are designed for shorter repaying duration and therefore you are not bound by long term obligation. Short term loans are obtained for a smaller amount as you need to repay it quickly. Short term loans may be provided for any purpose including educational expenses, home improvements, auto repairs, clearing smaller debts.

There are several types of short term loans:
  • Short term business loans
  • Short term payday loans
  • Short term personal loans
  • Short term auto loans, etc
Actually the repayment duration depends on the loan amount.
Short term loans conditions depend on your credit score and different lenders may offer you different short term loan interest rates. The purpose of the short term loan may also affect the repayment duration. The same technique is used to calculate the sum the lender may provide under short term loans.

Short term payday loans are also known as cash advance. Short term payday loans are to be paid back on your next payday. The funds are advanced to your account overnight or even in several hours.

Short term military payday loans serve the military community of all ranks and branches. The conditions of short term military loans depend on years of experience serving as well as other factors such as credit history, etc.

Advantages of short term loans:
  • Short term loans do not usually require collateral
  • Short term loans allow quick application that makes the funds available in several days or even hours
  • Short term loans require little paperwork
  • Short term loans provide you with money when you feel a sudden unexpected need
  • With short term loans you do not burden yourself with long term obligations
Disadvantages of short term loans: Short term loans are usually more expansive. As short term loans are not secured by collateral the lender raises interest rates to cover the risk they bear with your short term loan. But again much depends on your ability to repay. Before giving you short term loans the lender is likely to investigate into your credit history and if it is excellent you will be offered short term loans with lower interest rates.

Short term loans are available from various lenders that’s why it’s possible to find short term loans that fit your budget and lenders that offer you better conditions.