Borrowing money from a bank or other traditional lending source is a long process which may not lead to an approval. The application involved requires information regarding all assets, all expenses, a detailed credit history, an employment history, personal references, and an explanation of how the money will be used. Approval may take weeks, if not a few months, and may even be denied when all is said and done. The positives include low interest rates, extended pay back periods, and the opportunity to establish an above average credit score. The downfall is that the process does not respond to an immediate need.
If the car breaks down on a Friday, and it is needed to get to work on Monday, a bank will not be able to help with fast cash. Wise money management, saving for emergencies, and the appropriate use of a credit card may provide the means to cover those repair costs. The problem is that most working individuals are struggling to pay for essentials on a weekly basis, which leaves little money to put aside in a savings account. Borrowing the money from a family member or friend would be an ideal solution, if that is possible.
When borrowing from an individual is not feasible, non-traditional options can provide an answer. The process is quick and easy. Approval can be granted in a matter of minutes, depending on the company, and the money is typically available within hours. There are a few things to consider before taking out a short term loan, or a payday loan. While both meet a need, they come at a high cost. The interest rates for payday loans are the highest, with short term loans having only slightly lower rates. Failure to pay on time can result in exorbitant expenses due to penalties and compounded interest rates.
Short term loans are easier to manage because they do not have to be paid back all at once. Loans can be paid back in installments, with some terms extending up to six months. Find a company that is Short term lender authorised. That means the company has a valid license to provide short term loaning services by the Financial Conduct Authority. It also means the company is regulated so there will be no hidden fees or unfair practices. Consider all other options first to avoid getting into serious debt. If a non-traditional loan is required to meet the needs, customers can go to Moneyboat to fill out an application.