A short-term loan can provide you with just the right amount of financial security. With easy applications and fast funding, these loans can get borrowers the cash they need right away. But if you’re considering a short-term loan, you may be wondering where to start. Doing some preliminary work can help you find the right loan for your situation and start covering expenses. Let’s dive deeper into four ways you can find a great short-term loan:
1. Check your credit score and history
Checking your credit score and history can help you figure out what loans and terms you can qualify for, which can help narrow down your search. You can check your credit through your bank or with one of the credit reporting bureaus. Keep in mind that looking at your credit score is a soft inquiry, which means it won’t affect your score or show up on your credit report.
2. Decide how much money you need
Figure out what expenses you’ll need to cover with a short-term loan. If you only need a few hundred dollars to cover essential expenses, then a smaller loan may make sense. But you may want to get a larger short-term loan if you need a big sum of money to pay an unexpected expense, like a car repair or medical bill. Calculating how much money you need is an important step to finding a loan suited for your financial situation.
3. Compare lenders
Instead of taking out a short-term loan with the first lender who approves you, shop around first. This may help you find a lender who can give you a lower interest rate or better repayment terms. Some lenders will also have hidden costs and fees that you’ll want to avoid. By comparing different options, you can avoid some of these fees and find a lender with great terms and conditions.
4. Consider different loan options
There are many types of short-term loans that may be at your disposal. Be sure to examine each option, compare interest rates and terms, and decide whether you want a secured or unsecured loan. Here are several loans you can choose from:
- Cash advances: Cash advances are small-dollar loans that can help you cover expenses before your next payday. Borrowers can typically receive a few hundred dollars, and can pay back the loan in two to four weeks.
- Installment loans: Installment loans are short-term, unsecured loans that can give you a lump sum of money upfront. You’ll then repay this loan in fixed monthly payments over a few months or years.
- Title loans: Title loans are secured loans that let you use your car as collateral. You can receive funds worth 25 to 50% of your vehicle’s value, and can keep driving your car as you repay the loan.
- Lines of credit: Lines of credit are flexible loans that let you draw on funds as needed, up to your set credit limit. You can pay back the money all at once or over time, and will only pay interest on the amount you borrow.
The bottom line
A short-term loan can give you the funds you need to get out of a financial pinch quickly. Make sure to check your credit score and history, decide how much money you need, and compare lenders and loan options. That way, you can figure out what loan can meet your financial goals with stability and ease.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.