A short term cash loan is for short term use, they are often sought by individuals that are going through a rough patch and need additional money and they need it fast. Although they can help, they can also be problematic so those that are thinking of using one must be fully aware of what the costs and risks are.
What is a short term cash loan?
A short term cash loan is one which is taken out when there is a temporary issue with available money. In the majority of cases the loans are taken for no longer than a couple of weeks and the amount of money borrowed is usually modest, perhaps $200 or so. When the applicant is approved he or she will normally have to write a check for the loan amount plus a fee, the check is cashed when the borrower is ready to repay the loan.
In the event the loan cannot be repaid when it is due, in many cases it can be rolled-over, thereby extending the loan. It is not necessary for the loan to be repaid but the fees associated with the transaction continue to accrue.
It is quite easy to get approved for a short term cash loan, there is no need to have a good credit score, the result is, loans of this nature are very popular with people who are facing imminent financial difficulty.
Because there is significant risk taken by the lender the cost of short term loans is quite high. The APR (annual percentage rate) can run several hundred percent, a typical loan of $100 taken for two weeks will usually require a repayment of $120.
The problem is the cost:
There is nothing wrong with needing money; it happens to most people at one time another. The problem with a short term cash loan is the cost, in many cases taking out a loan of this nature does not solve the problem.
A short term cash loan can help you get through a rough period, but this type of credit should not be used as a matter of course, if they are not handled correctly they can quickly make things worse rather than better. If, for example, you need access to quick money to repair your car so that you can keep earning money, then maybe a short term loan is an effective strategy.
If you are in need of a short term cash loan then you are invited to apply on-line at ShortTermLoans.com. Short Term Loans, L.L.C. can help you get over a rough spot with quick cash.
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