There is a good chance that at one time or another, you have had financial problems and difficulty getting money to help you. This is where installment loans can help you now. A short-term loan from any reputable online lender will not only allow you to cover the cost of all the problems you are currently experiencing but will meet your needs with quick approval. We want to clarify right away that short-term loans are not payday loans.
What is a short-term loan?
A short-term loan is a loan that is usually repaid in a short period of time. Of course, there are exceptions, but most short-term loans are paid within a period of four months to two years. Short-term loans are also often of a lesser amount, ranging from $ 100 to $ 1500. These loans are meant to help cover an unexpected expense that needs to be taken care of immediately. Another feature of a short-term loan is its approval time. Since these loans are smaller, it is often faster to obtain approval. It will depend on your lender but most lenders who offer short-term loan options can ensure that the borrower can have his money after a day or two.
A short-term loan can provide you with money to cover any of the following circumstances:
- Vehicle or emergency fees
- Medical problems
- To cover the cost of an unexpected trip
- To pay for property damage
- cover the cost of rent
- To help break the payday loan cycle
As you can see, a short-term loan can be used to cover any of your current financial needs. Ranging from a medical emergency to pay for an unexpected trip, short-term loans can be a great option for those who need it.
What is an online loan?
Online loans are offered by lenders who work entirely or mainly online. Despite their presence for several years, they are relatively new in the world of loans. Online business is constantly evolving and expanding; we shop online, find our entertainment online and even meet new friends online. It is only logical that the general financial industry, and particularly the lending industry, conducts a large part of its business online.
Here are some general points you can expect when dealing with an online lender:
- A complete website with resources to help you make good financial choices.
- An easy-to-fill online application
- Convenient and effective communication with the lender, usually by email or phone.
- Fast approval time
- Online contracts without the need for in-person meetings
- Less documentation
- The use of new technologies to assess creditworthiness
- In general, credit inquiries are not required
Whether you’re looking for convenience, minimal documentation or simply an alternative to your bank, an online loan could be exactly what you need to deal with your financial problems.
What should you look for with a short-term loan and the lender
Not all short-term loans are identical and lenders who provide them do not follow all the rules. This means that you must be careful in choosing to do business with an online lender. First, you must prioritize your financial health. If a loan does not suit you or may significantly affect your ability to meet your other financial obligations, you should choose another solution. Second, you must make sure that your lender is reputable and legal. Here are some alarms that should not be ignored:
- Payday loans
- Guaranteed or instant approval
- No due diligence
- If the loan seems too good to be true
- If a lender asked you to make your first payment
Why did lenders choose to conduct their business online? Speed and practicality are the main reasons. Potential borrowers can complete an online loan application in their free time and usually without too much involvement from the lender. Once the application process is complete, loan specialists can focus on borrower approval and get the financing they need as quickly as possible. Plus, the convenience of getting the money you need from the comfort of your living room is a huge plus. The era of moving to the bank and wasting time filling pages and pages of documentation is over. If your time and simplicity are important to you, look to work with an online lender the next time you need financing.
Is there a credit check?
There are many online lenders who provide short-term loans without conducting a credit inquiry. This is ideal for people who have experienced financial difficulties in the past and who have a low credit score.
What is a credit inquiry?
Here is a summary of what a credit survey is. Everyone who uses credit has a credit history and a credit rating. In Canada, there are two credit bureaus (Equifax and TransUnion) that collect information about people’s credit. Then, this information is used to create a three-digit credit rating based on your payment history, the total amount of debt you have, your credit length, the diversity of your credit accounts and the latest recent surveys. So, what does all this have to do with a credit check? When you apply for a loan from a bank, it will analyze your credit history and credit rating with one of the credit bureaus to make sure you meet their requirements. Does your credit history indicate a responsible use of credit? Is your credit rating high enough? Online lenders often do not check credit because they understand there are other ways to assess financial stability. For example, with proof of income and personal references.
To be approved
A short-term online loan application without credit check is approved based on more than a 3-digit number. This has broadened the financial world to constrained Canadian borrowers, they now have access to the financing they need, regardless of their credit rating.