Editor's choice: OppLoans Installment Loans
- Easy online application
- Quick approval
- Long repayment terms
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If you need access to cash quickly, a short-term loan can help. A short-term loan can get you out of a financial jam, whether you need money for a medical bill, to get your car repaired, or more. They are designed to help you if you need cash fast, and can’t wait until payday.
It’s important to note that short-term loans can have negative consequences, so be sure to understand how they work, what fees are involved, and what the interest rate is beforehand.
The APR for short-term loans is often much higher than that of normal bank financing. On average, short-term loans have an APR of around 400%. The APR typically ranges from about 390% to 780%. For credit cards and personal loans with standard banks, the APR is a lot lower. For example, the national average APR for credit cards is around 15%.
To give you an example of how APR works with short-term loans, take a $200 loan amount with a loan fee of $30. If you have a repayment term of 12 days, your APR would come out to 456.25%.
Your interest rate depends on how much you’re borrowing and for how long. You can get an estimate of the rate and costs using the short-term loan calculator below. Use the slider to select how much you want to borrow and for how long, and you will get an indication of how much you will be charged.
Short-term loans can be expensive, so make sure you absolutely need one before you take it out. The APR is a lot higher for short-term loans than other financing options. APR rates can reach astronomical heights and keep borrowers deep in debt with their payday lenders.
Additionally, many short-term loans have hidden fees and overdraft fees that can add up to over a hundred dollars.
If you are struggling to pay bills, and your debt is piling up, talk to you utilities providers and see if they can work out a payment plan. If you are on government benefits, see if you can receive an advance. For other options that are more affordable, explore our payday loan alternatives guide.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Short term loan fees vary by lender and state, but generally charge a fixed-fee based on the amount borrowed. You can expect around a $10 to $30 fee for every $100 borrowed. A $15 fee for $100 borrowed is pretty standard; going along with this example, these terms equate to around a 400% APR for a 2 week plan.
The lender will usually outline the monthly and annual fees ahead of time. For late payments or defaults on the loan, you could be charged additional fees. Making payments on time and paying back all fees is essential, because the lender can take you to court otherwise.
Interest rate isn’t the only part of a payday loan to take into account.
Be aware of how long will it take for the loan amount to transfer to you, and make sure the turnaround time will meet your needs as a borrower. If you apply at a physical location, the turnaround may be same day.
Make sure the company is easy to contact, and lists a phone number and email address. It is also convenient if the company offers a live chat feature. Being able to reach the company is helpful in case you have problems with repayments, or need to ask a question.
Look for a lender that lists out loan information clearly and is transparent about all of the details. See if you can find information on fees and terms and conditions on the company’s website.
Each lender may vary in the loan amount and term. It is important to find a company that provides the loan details that work best for your situation. Some lenders only offer small loans to new borrowers, while others maybe have repayment amounts that are too expensive to afford.
There are short-term loan lenders that offer additional benefits and features. These may include discounts on future loans.
Here’s an example of repaying a typical short term loan:
First, be sure you know the cautions before borrowing. Think about your personal situation and decide if a short-term loan is the best option for you and your unique circumstances. Look at the term options and if the repayment amounts will be doable for you.
If a short-term loan looks like your best option, make sure to avoid getting multiple payday loans and be absolutely sure you can afford to pay the interest.
If you are interested in applying for a short-term loan, you can compare different lenders available in your state. Once you decide on a lender, you can click “Go to site,” to then be directed over to the lender’s online application form. To be eligible for application, you must be at least 18 years old and be generating income to your bank account.
Typically, short-term loans range from $100 to $2,000, and on average have around a 2 week term. The loans are also called “payday” loans because the terms and amounts are usually coordinated to your income and how often you are paid from your place of employment.
Short term loans, in general, do not usually help build credit or increase your credit score. If you want to build your credit score, it may be better to explore another financing option like a credit card.
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