Your need for finance doesn’t have to be a long-term burden – get a loan and repay it in the short term
A number of people at some point in their lives end up needing access to finance, and getting said finance when you have bad credit can be an uphill battle. One form of finance people with low credit scores can consider applying for is a short term loan. These loans can also be referred to as payday loans, payday advances, and cash advances.
These loans give individuals the ability to borrow funds that they repay in a short span of time – usually one to two months or less.
Check into Cash Loans
Check into Cash allows you to directly apply for a payday loan and have your cash when you need it.
- Min. Loan Amount: $50
- Loan Term: Varies by state
- Turnaround Time: 1–2 business days
- Total Costs: Varies depending on the amount and your state of residency.
- Must be 18+
- No security needed
- Confidential and secure!
How does a short term loan work?
You can apply for short terms loans online or in-store, depending on the lender you choose to apply with. You can also apply with a loan matching service who will select a lender for you. The amount you can apply for depends on the regulations in your state and can also vary from lender to lender.
How quickly you get access to approved funds depends on your lender and the method you choose to apply. Online loans are typically funded on the same or next business day, while in-store loans typically are funded in an hour. However, repayment methods differ for these two loan types. Online lenders will usually direct debit your account on the due date while if you apply in-store you’ll need to leave a postdated check.
You can apply for a short-term loan if you have bad credit, but you still have to meet the eligibility criteria to apply. What you should also remember is that regulations vary greatly from state to state – so ensure the lender you apply with is meeting your state’s regulations.
A selection of loans you can apply for
Here are some loan providers that you can apply to. Note that the max loan amount is based on the lender’s max amount and based on your state of residence. Check the websites of any providers you’re interested in to confirm they operate in your state of residence.
A selection of lender matching services you can apply with
These lender matching services are not lenders, loan brokers or agents for any lender or loan broker. They also do not make credit decisions. They focus on trying to match you with a lender that might be able to provide you the funds you seek. Note that the max loan amount is based on the matching services max amount, but it will vary based on your state of residence. If you proceed with one of these services, confirm that the lender is reputable by checking with your local government.
Benefits that come with short term loans
As per the short term loans definition, these loans let you get money that you need to repay in around a month, but there are other features that require your attention as well:
- There is a quick application process.
Most providers of short term loans accept online applications, and they inform you of your application’s status in a matter of minutes. Once approved, you can get the money in your bank account by the following business day. Lenders who have stores can give you access to approved funds on the same day even if you apply online.
- The repayments are automatic.
When you apply online you usually provide your checking account details so the repayments are automatically deducted. If you apply in-store you leave a postdated check which will be cashed on the due date. No matter how you apply, when it comes time to make your repayment there is no need for you to remember to make the repayment.
- Compare any upfront or payment costs.
Compared to traditional loans, short term loan fees can be significantly higher. While state laws play a role in restricting the fees you end up paying, you can’t expect every lender to charge the same loan fees, so comparing this across lenders can help.
- You can still apply if you have bad credit.
Applying for short term loans with bad credit is possible because of the slightly relaxed lending criteria that the short term lending industry follows. What these lenders essentially look for in an applicant is their ability to repay.
What to consider: The good and the not-so-good
- You can get your money quickly.
Some lenders provide same day cash advance loans, but in most cases you can expect to get your hands on approved funds by the following business day. Bear in mind, though, that just how long it takes for you to get your money can depend on the time of day you apply.
- You can use the money in any way.
You can use the money you receive through a short term loan for just about any worthwhile purpose like paying utility bills, paying medical bills, repairing your car, or buying essentials for your home.
- There is no collateral required.
Short term loans are unsecured in nature, so you don’t have to worry about what you’re able to provide in the form of collateral.
And not so good?
- You will pay a range of fees.
Short term loans attract noticeably higher costs in comparison to conventional loans, and you end up paying this in the form of fees. If you extend the duration of such loans, the fees you end up paying can increase considerably.
- They aren’t available in all states.
Depending on where you live you may not have access to short-term loans. Different states have regulations on the minimum loan term lenders are able to set for loans, so check what restrictions your state has in place.
Is there anything I should avoid with short term loans?
Avoid applying for the loan if you have any indication that you might not be able to repay it in a timely manner. This is not just because of additional fees, but also because not repaying the loan can lead to collection activity, which, in turn, can affect your credit score.
Make sure to go over the contract the lender provides at the time of loan approval. This document gives you crucial information surrounding the terms of your loan and the fees it attracts. Lastly, avoid paying the loan late or refinancing the loan if you can, as you’ll likely end up paying additional fees.
Questions you’ve asked – we’ve answered.
How quickly can I complete the application?
In most cases, completing the application for a short term loan will not take you more than 10 minutes.
What is the eligibility criteria for a short term loan?
Applicants should be over 18 years of age (in most states), they should be citizens or permanent residents of the US, and they should have steady sources of income. Applicants applying for short term loans online also need to provide their bank account details.
Why does the lender need my bank account details?
Upon you accepting the loan contract, the lender will transfer the approved funds into your nominated bank account. They also request for a payment from this account on your loan’s due date.
I'm staying in New York, can I still get a short-term loan?
If you are currently staying in New York but you’re only visiting from Colorado then you may still be able to get a loan online. Payday loans are illegal to residents of the state of New York.
Are payday loans available in my state?
Compare payday loans in your state
Short term loans give people quick access to much-needed money, but since you have numerous options from which to choose, ensure comparing a few before applying.