Happy Home Insider
Personal loans are highly flexible forms of financing that you can get via banks, credit unions, or online lenders. Their amounts range from $1,000 to $100,000, and you can use them for a variety of purposes like:
- Debt consolidation
- Payday loan consolidation
- Car repairs or purchases
- Weddings
- Vacations
- Regular bills
- Medical bills
- Home renovations
- And more…
STOP!
Do you need a financial reset? If you owe more than $10,000 here is a debt relief resource available to help you today.
As you can imagine, paying off a $100,000 loan would take some time, which is why personal loans have terms that can go up to seven years. On the other hand, short-term personal loans have repayment periods under 36 months. And since they must be repaid quickly, they’re usually much less than $100,000 and may carry higher interest rates and fees.
Types Of Short-Term Loans
Before we jump into how to get a short-term personal loan, let’s touch on the different types of short-term loans that offer quick cash and require fast repayment.
The first is the payday loan, notorious for its triple-digit interest rates. If you get a payday loan, the max you can borrow is $500, and you’ll have to repay it out of your next paycheck. If you can’t repay the payday loan, you’ll need to roll it over, incur a fee, and enter yourself into a cycle of debt that can be tough to get out of.
A cash advance is another type of short-term loan. You can get it from a bank or alternative lender that lets you borrow money versus your credit card’s line of credit. In terms of short-term loans, this method isn’t highly recommended.
A safer way to find fast funding is through an installment loan. It’s a term used interchangeably with personal loans that involves getting a lump sum of cash and repaying it in monthly installments. Some installment loans have 60-month terms, but you can find shorter ones of 12, 24, and 36 months.
The Steps To Get A Short-Term Personal Loan
You can get a short-term personal loan through your bank, credit union, or an online lender like OneMain Financial, LendingClub, Upstart, Upgrade, etc. Here are the standard steps to follow:
1. Provide basic information to prequalify for the loan.
You want to look for lenders offering prequalification that does not involve a hard credit pull negatively impacting your score. Instead, they use bits of basic info to determine your creditworthiness, such as ID, employment, income, etc.
2. Compare your loan offers.
Prequalification should tell you how much money you can borrow, the interest rate, monthly payments, terms, etc. This info should be available in under an hour. Once you have it, compare the loans to find the best one for you.
3. Apply for the loan.
With your top loan selected, apply for it by uploading bank statements, pay stubs, or whatever the lender asks. If approved and you agree to the loan, you’ll need to sign an agreement to receive the funds. Some lenders offer same-day funding via deposit to your bank account.
