If money is tight and you are trying to figure out your budget for the rest of the month, and you don't think that you can pay all the bills that are due, you may want to get a short term loan. There are many reasons why a short term loan is better than a loan that has to be paid back right away on the next day you get paid, and you may not have the credit to get a long term bank loan. Here are a few reasons to discuss short loans with a short term lender.
Long Enough to Pay Back without Stress
Here are a few of the things you want to consider when you are setting up the dates that you'll pay back the loan, and when you are looking at loan options:
- The more payments the lower each one is and the easier they are to pay
- It's easier to budget for payments that are spread out
- Pick days that are on or after a pay day
It's easier to pay back the loan if you don't have to come up with a large amount in a short amount of time, and they company should be able to work around your pay schedule.
No Credit or Bad Credit
The short term loan options are often easier to get approved for in comparison to bank loans. The short term lenders are more concerned with you having a job with direct deposit or automatic pay, so that they can take their payment out automatically around the same time. This means people that can't get a credit card or bank loan are more likely to get approved for this type of loan.
Installment Reporting for Improved Credit
When you are making your payments over a spread out amount of time, it's an easy way to improve your credit. The short term loan company will report that you are being a responsible borrower to the credit bureaus, so you are actually boosting your score as you make your payments.
If you are looking at the month you have ahead of you with bills and you aren't sure how you're going to make all the payments you have coming up, it's time to borrow money from another source. With a short term loan option you'll have some time to pay the money back and you won't have to worry about bigger bills the following month.