There are some clear benefits to doing business with short term loan companies as opposed to traditional lenders. As a matter of fact, for some people short term loan companies are the best choice. Understanding the differences between a short-term lender and a traditional lender can help to shed some light on why they may be the best option for you.
The Difference
Traditional lenders require that you take a minimum amount of money and that you pay it over a term of 12-36 months. In many cases, you do not need to commit to $2500 and stay committed to the payment for a few years. It can complicate your finances and tie things up for a long time. Traditional lenders also require a great deal of documentation when you apply for a loan.
Short term lending companies, do not require that you take a minimum, if you need a couple of hundred dollars, then you just take the loan for a couple of hundred. You do not have to commit to a long-term payment agreement. The loan is paid quickly (usually on your next payday) so you do not have that payment worry hanging over your head for months to come.
Bad Credit Problems
One of the biggest benefits of considering a short-term lending company to meet your immediate needs is if you have bad credit you are far more likely to find what you need with a short-term loan company than you are with a traditional lender. Short term lenders will:
* Consider your application regardless of your credit score
* Consider your application based on your ability to repay the loan
