Short-term loans | Guide

Obtaining a loan for a short period of time is particularly difficult, since most banks and real estate credit societies make their clients commit to one for the long term , due to the amount of interest they can receive from them. Therefore, many offers that we will find in the market will be extremely poor in quality / price ratio and if we are not careful, we will end up leaving us in a worse position than we were at the beginning.

In this guide, we will explain some of the best tips for finding a short-term loan that suits our needs and helps us find one that does not generate risks of considerable levels of interest over the term that lasts.

Short term loans
Short term loans

Choose the correct method

The first thing we must do is choose the payment method that suits us best . For this, it is important to ask ourselves how much money we are requesting to borrow, because we need to be realistic with ourselves about exactly what we want it for. On the other hand, we do not aspire to ask for an unnecessarily large benefit, because then we will find ourselves in the position of paying for something that we don't really need.

The next thing to think about is whether or not we really want to ask for cash . Which means that we will have to consider if it could be fulfilling the same objective through another form of payment. Getting a cash advance is not always the right option , because we will often find that they are actually the most expensive forms of credit.

The last thing we must take into account before requesting a benefit is how long we think we will need the money . In this situation it is extremely important to be precise. We should not underestimate the time it will take us to pay what is owed, since this can bring large amounts of interest and pay much more capital if we take longer than we had previously agreed.

Basically, short-term loans are meant to be less than a year or even less, but sometimes they can be extended for a longer period of time. Once we have carefully studied each of these three considerations, it is time to decide which type is right for us.

Option 1: Credit cards

One of the best ways to ensure a good amount of money is by getting a credit card. The best type of card to get it in advance is using one that has an introductory offer of 0% interest on all purchases .

Surprisingly, these offers are actually incredibly common and we may be able to find more than a few banks and building societies that will be happy to let us get started with one of these cards - if we have a decent enough track record.

This form of loans is normally only offered to people who have good bank scores, which means that we must have a good record when it comes to borrowing money and making payments on time .

Option 2: Get an interest-free overdraft

Another way to ensure a good level of credit for little money is to get a bank account that offers a free overdraft . Overdrafts are generally offered by most banks and mortgage companies, but not all of them are free - in fact, many can be very expensive. Therefore, it is very important that we first verify the terms and conditions of the overdraft, before we go in there and commit to using one.

This type of loan is generally easier to be approved than most credit cards, but that does not mean that we will be able to obtain it. For this we need to make sure that our credit rating is not too bad , however, if it is, it is still easier to obtain it than with a card.

Option 3: Flexible Loans

One of the options to obtain capital and that many people often do not consider, is through this way . They work very similar to standard personal loans, but they allow us a bit more leeway when it comes to making payments.

Unlike a standard personal advance, flexible personals allow us to change the amount of payments when necessary . Which means that it will allow us to return more than the specified monthly payment amount, whenever we wish and by doing this we will not incur any type of penalty.

This can be extremely useful for people who need to borrow more than is possible on a card or overdraft, but who do not want to be tied to a rigid long-term payment plan from their bank or credit union. mortgage credit.

Although it is a slightly more difficult option to obtain than the previous two that we have discussed in this guide. The main reason is because their sums of money are much larger . Besides, we need to have a decent credit rating and also proof of a stable income.

Leave a comment

Your email address will not be published. Required fields are marked with *