Short Term Personal Loans Options
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Learn About Short Term Personal Loans & If They Are Right for You
Sometimes, unexpected expenses can come up that we simply are not prepared for. A vehicle breaks down and needs a new transmission, or maybe your furnace goes out in the middle of a cold snap. These kinds of expenses are a part of life that seems to hit right at the worst times, and sometimes at the same time.
When you are not prepared financially to cover the costs of these emergency expenditures, what options are there at your disposal to get you back on track?
You might have an emergency credit card to use just in case, but maybe you have already maxed it out on a different emergency. When you consider the amount of interest you may pay using a credit card, you may start looking for another convenient alternative.
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Learn More About Short Term Personal Loans Options
When you have exhausted your savings, you may want to use a short-term personal loan. Even if you have a credit card with available funds, a personal loan can save you money by offering lower interest rates. In addition, a personal loan should have a fixed monthly payment and set term, making it easier to manage than a credit card. There are short-term personal loans for bad credit, but they may have high interest rates. Whether you need a small short-term personal loan or a large short-term personal loan, you will be more likely to secure a low interest rate with a good credit score. Short-term personal loans are an easy and quick way to get the money you need to take care of smaller and more immediate needs. Keep reading to learn more.
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How can I get a short-term loan?
There are several options for getting a short-term loan. Some are better than others. You could open a new credit card, secure a personal loan, or ask a family member for help.
Getting a short term personal loan is often the best choice. To get a short-term personal loan, you should have some idea of what your credit score is. You can do this easily as by law you are allowed one free copy of your credit report every 12 months. There are three nationwide credit reporting companies, and each one should supply you with a free credit report when you request it.
Once you have your credit report, you should identify if there are any blemishes on your report that you can resolve quickly to help bump up your score. Increasing your credit score by only a small amount can do wonders to increasing your chances of being approved as well as give you access to better interest rates.
If your credit score is as good as it can be at the moment, or you do not have time to raise your score because you need the money fast, you should see if you can pre-qualify for a personal loan at Acorn Fiance.
What are the best short-term loans?
Personal loans are usually the best option for a short-term loan. Some reasons why include a fixed monthly payment, competitive interest rates, and fast funding times. If you want to get a personal loan, you should visit Acorn Finance online. Acorn Finance works with many top national online lenders, but some lenders may be better for your situation than others. A few lenders have built a reputation for helping borrowers with specific credit scores or who have certain financial needs.
Here are some of the best short-term loan lenders currently working with Acorn Finance:
Upgrade – Best for people with credit scores 580+:
Upgrade has built a reputation of helping people use small loans to build their credit. You may only need a 580 credit score to qualify for loans starting as low as $1,.000. In addition, you should have a free cash flow of at least $800, but they may allow a higher debt-to-income ratio than other lenders.
BestEgg – Best for people looking for the lowest interest rates:
BestEgg is a reputable lender who is known for giving fairer interest rates to borrowers with bad credit. They do require a credit score of at least 600, although this requirement can vary depending on other factors. BestEgg has no minimum income requirements but you are usually required to provide proof of income.
OneMain Financial – Best for people with little to no credit:
OneMain financial is designed for people who have little to no credit since there is no minimum credit score requirement. They do tend to have higher rates and sometimes they may have pretty strict income requirements. Their small loans start at $1,500 and they are able to do same-day deposits, although funding times may vary.
Any of these trusted lenders can help you secure a short-term loan and they are all part of the Acorn Finance lender partnership circle. You can check offers from several lenders at Acorn Finance.
What is considered a short-term personal loan?
A short-term personal loan is a loan that you can get quickly and that you usually payback within a year. You can sometimes get a short-term loan that is designed to be paid back in only a couple of weeks. There are different types of short-term loans. The type of loan that you can qualify for is dependent on what kind of credit history you have.
Usually, the lender will do a soft pull credit check or review your pay stubs to see your credit score and your current income. Most short-term loan providers can do this process for you in as little as an hour and transfer the money into your bank account within as little as 24 hours.
Why use a short-term loan?
The idea of a short-term loan is to provide a quick cash flow for when you may have your cash tied up in other avenues. Many individuals use them for a quick cash injection that they can use to pay some immediate expenses. They are commonly used even by small businesses that may not be eligible to apply for a line of credit from a large bank.
For personal use, they can be used for whatever you need them to be for. Some examples being: car repairs, rent, groceries, pay off credit cards, get caught up on mortgage payments, pay a quick hospital bill, pay a car loan to prevent repossession of the vehicle, and thousands of more uses.
Small businesses may use a short-term loan to pay vendors, purchase a vital piece of equipment to keep the business running, and boost payroll.
Short-term loans also make a great option for people waiting on a cash settlement and know that they have money coming in soon, but need cash right away.
How much can you borrow with a short-term personal loan?
For a short-term personal loan, they generally average around $2,500. They are designed to get you back on your feet and serve as an alternative to other methods of borrowing like credit cards and personal banks. Most lenders will not loan for an amount less than $1,000, because honestly, it may not be worth it for them. Lenders are looking to make a short-term profit off of your loan.
If you are applying for a personal loan, the term offered may depend on the loan amount. If you are requesting a small loan amount such as $1,000, the lender often assumes you are looking for a short-term loan. Therefore, the term they offer is short-term. However, if you need to borrow a higher amount and need more time to pay, you can still use a personal loan. Terms can vary depending on the lender and other factors. Due to the fact that short-term loans are, well, short-term, borrowers may put less time into researching.
Be wary of companies offering small loans for $500 or so that have a two-week payback period. This is what people have come to be known as Payday lenders or consumer-friendly lenders. You can see places like this in strip malls across the country. They give you a loan for $500 and might charge you a fee of $15 for every $100 you borrow. Might seem like an ok thing to do if you are in a bad spot, but once you start missing payments, the cycle may never end and they often have access to your personal checking and savings account which you signed away when you accepted the terms of the loan.
What is the easiest short-term personal loan to get?
The easiest short-term personal loan to get is an installment loan. This short-term loan is paid back in a short-time by making equal monthly payments. The idea of these loans is to analyze your monthly income and see what you can realistically afford to pay back each month over the course of a few months. You will want to make sure you can make the payments and afford any additional fees from being charged on top of the interest.
Qualifying for a personal loan or installment loan may not be all that hard but if you are new to credit or have a low score, you may need a cosigner. If you have a cosigner with excellent credit, that is probably the easiest way to get a short-term loan that is going to give you the most favorable terms and interest rates. This can save you money over other short-term loan options, but it could impact your relationship with the cosigner and not everyone is comfortable being asked to be a cosigner.
Can you prequalify for a short-term personal loan?
Yes, pre-qualifying for a short-term personal loan is extremely easy at Acorn Finance. It usually only takes a few minutes and does not affect your credit. Acorn Finance partners with top national lenders. As a consumer, you can benefit from the competitive platform Acorn Finance offers. Simply fill out the online form and receive multiple personal loan offers within 60 seconds or less with no impact on your credit score.
What is the interest rate for a short-term loan?
Interest rates on short-term loans are determined by the lender based on your credit score and the terms of the loan. It is best to use a service like Acorn Finance to help you find a short-term loan with the lowest interest rates for your credit profile. At Acorn Finance, our lending partners can offer APRs as low as 6.99%, depending on credit score. In some cases, interest rates may be lower for a short-term loan, while in some other cases they may be higher. It really all depends on the lender. If a lender's goal is to secure as many short-term loans as possible they may offer lower interest rates to reach their goal.
What are the advantages of short-term personal loans?
There are many advantages to short-term loans that make them a desirable and logical financial alternative to other short-term methods of receiving money quickly.
Some of those advantages consist of:
They can be funded quickly: The best part of a short-term loan is that you usually can receive funds in as little as 1 to 2 business days, although funding times may vary.
They are easy to secure and manage: In some cases, you can secure a short-term personal loan without ever leaving the comfort of your own home. With a fixed monthly payment, personal loans are easier to manage than credit cards or some other types of short-term loans.
There are so many options: Online lenders that specialize in short-term loans have become mainstream and consumers have learned to trust these lenders as viable institutions that can help an individual acquire the financing they need. With this trust, there has been a boom in popularity for both lenders and borrowers.
Choices for bad credit: Many larger banks will not even look at you if you have bad credit, however, lenders that work with short-term loans may have many more options for borrowers that may just need a quick leg up. The lenders may keep the loan amounts small but they can still make a profit while the borrower can get the cash they need.
They are highly regulated by the federal government: Lenders are required to have a reasonable assumption that you can repay the loan and they must behave responsibly to people who miss payments.
These are the kind of advantages that make short-term loans a reasonable option for many Americans each day.
What are the disadvantages of short-term personal loans?
When applying for a short-term personal loan you should be wary of predatory lenders, but you should understand the risk and disadvantages of taking out a short-term personal loan.
Here are some of the disadvantages you should know about:
High-interest rates: Lenders may charge you higher interest rates and you will have to pay them if you want to receive the funds. Lenders do this because of the risk they are willing to take to secure your short-term financing. Many borrowers may have bad credit and the lenders need to protect themselves. They also do this because since the loan amount is smaller, they want to ensure a healthy profit.
More fees: Be sure to make all your payments on time to avoid additional fees and penalties that could add up and cost you more money than the already higher interest.
Can I get a short-term personal loan online?
Yes, getting a short-term personal loan online is by far one of the easiest ways to find a lender that wants to work with you and your financial needs. While larger financial institutions may offer short-term personal loans, they probably prefer larger loan amounts. Online lenders have become a preferred source for short-term personal loans. If you are seeking a short-term personal loan, you should consider using Acorn Finance to help put you in touch with the lender who will be right for you.
Acorn Finance has a network of top national lenders with a good reputation. To check offers you need to submit an online form and wait about 1 minute. Within 60 seconds or less, you can receive multiple personal loan offers with no impact on your credit score. After you compare offers you can choose the one you prefer and complete the process with the lender of your choice.
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I am extending my patio. My contractor informed me of possible financing and the Acorn Finance experience was awesome, very easy.
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The whole process itself was just so fluid, all the way through to the end. I was thinking it can't be this easy, but it really was!
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