Do you need a quick cash flow boost for your finances? Here’s how a six-month personal loan can help you out.
Banks and other lending institutions have long approval periods and stricter documentation requirements, which can make it a bit longer to access finances, especially during an emergency. With this in mind, it can sometimes help to seek alternative financing from a creditor who offers short term loans.
How does a six-month personal loan work?
Six-month personal loans are designed to help you with your finances when you need cash soon, but would like to pay it back over a period of six months or more. A six-month personal loan could give you access to up to $5,000, with the option to pay it back conveniently within a period of three to six months.
Installment loans are another potential option when looking for a six-month personal loan. Often installment loans will get you cash faster, but with a longer period to pay it back. Loan terms will vary based on the state you live in. You can usually apply online and have the cash you need deposited quickly, sometimes within one business day.
Compare installment loans
What do you need to look for when comparing six-month loans?
- Fees and rates.
When looking for a six-month personal loan, rates will vary based on whether you choose a personal loan, installment loan or short term loan. Shopping around is the best way to ensure you end up with a loan with competitive rates.
- Repayment terms.
Another thing you should consider when applying for a six-month personal loan is whether it offers a payment plan that suits you. The repayments should be within your income.
- Approval period.
Turnaround time will vary, so the faster the approval process the better. Unlike bank loan applications, which are in-depth and often time consuming, a short term or installment loan should give you access to cash quickly. The latter two also have near-instant approval, and the cash transferred to your account within a couple of days.
- Repayment penalties.
Some payday loans carry hefty penalties for missed repayments, which could end up straining your finances more and raising the cost of borrowing.
Benefits and drawbacks
- Instant approval.
Lenders offering installment loans know that you need cash in a hurry, which is why they make the application and approval process much quicker than banks do. You can apply for a six-month personal loan online and get approved in a day or two, allowing you to access the cash you need almost instantly.
- Flexible loan amount.
A six-month personal loan gives you access to the amount you need. Different lenders offer different loan amounts, but you can generally borrow anywhere from $300 to $5,000. Regardless of whether you need a large amount for a vacation, or you just need a small boost in your finances, a six-month personal loan could work for you.
- Flexible loan term.
Most six-month installment loans offer you a flexible repayment period and repayment options that suit your finances. You usually have the option to make weekly, biweekly or monthly repayments to suit your budget.
- Higher fees and rates.
Payday and installment loans are usually meant for short-term financing, which makes them more expensive than standard loans. If you opt for a variable rate loan, and pay out early, you may be charged an early payout fee.
Things to be cautious of
The temptation to borrow more than you need is always there with payday loans, because you get the cash fast without having to satisfy strict lending criteria. You should always remember that you will have to pay interest and other additional costs on your loan, so you should only borrow the amount you need, and have a clear purpose for what you want to spend it on.
- Missing repayments.
Make sure that you can comfortably make your monthly repayments before you apply for a loan, as there are usually penalties for late payments.
A six-month personal loan can make life a lot easier when you find yourself in a tight financial spot. If you are looking for a short-term loan, use our payday loan comparison table and get a product that suits you today. Please note that you will have to meet the following requirements:
- You have to be at least 18 year of age in most states
- You must be an American citizen or a permanent resident of the US
- You must have proof of regular income
What type of loan are you looking for?