While same business day loans are meant for emergencies, that doesn’t mean you should apply for one without doing the proper research ahead of time. With the steep interest rates and high fees that can sometimes accompany these loans, you’ll need to make sure your finances are in the right place to handle the repayment phase.
Another important aspect to research is the different types of loans that are out there. After all, you’re going to want to make the right choice for your particular situation, and part of that is knowing what loan options may be available to you. To help you get started, here are three common types of same business day loans.
If you’re looking for a flexible personal loan option, a line of credit loan might be one option for you. One of the things that makes it so flexible is the fact that it’s a form of revolving credit. What this means is that if you get approved, you’ll have the ability to borrow funds continuously from a specific credit limit without having to submit a new application each time you need money. This will be contingent on you having available credit and your account being in good standing. The interest and/or fees you will pay will be based on how much of your line of credit you’ve used, not the total amount of your line of credit limit.
Short term installment loans work differently than lines of credit in some key ways. Instead of being given a credit limit to draw from, you’ll get a specific amount of money in a lump sum, if approved. You’ll then have to pay back what you owe, but not all at once. Instead, you’ll have a series of scheduled and equal payments laid out ahead of you that you’ll need to make over the course of several months, or even several years depending on the type of installment loan you’ve applied for.
If you need a quick short term loan to help you out in a bind, a credit card cash advance might be a speedy option to stem your immediate cash flow issue. These work by allowing you to withdraw cash from an ATM using your credit card instead of your debit card. Just remember that these two things aren’t identical transactions. For starters, you’ll need to pay a fair bit of interest on the money you withdraw, and there may even be some fees tacked on. You should also keep in mind that the interest you’ll accrue will start to build up immediately, unlike a regular credit card purchase. Overall, this can be a pricey route to take when you need to borrow money so make sure to only go for this option when you know will be able to pay back what you’ve borrowed.
If you need some extra cash to help you out in an emergency, CreditFresh may be able to help! You can submit a request for a Line of Credit through CreditFresh, and if you’re approved, you may be able to get your funds as soon as the same business day3. Let’s look at some of the potential benefits of this Line of Credit.
As we’ve gone over, the short term loans we’re discussing here should only be tapped into for emergencies. They can be useful because of the potential speed of the application process (particularly with online short term loans). However, because of the high fees and/or interest rates that usually come with them, they should be used carefully. In order to use them properly, it’s important to have an understanding of what constitutes an emergency situation. While this can vary from person to person, some general things can include:
You should also make sure you understand when you shouldn’t use a short term loan, which can be for things like entertainment, shopping, vacations, and more.
We understand how an unexpected expense can place a lot of strain on your finances and your overall well-being. To help you avoid this stress, it can help to put together an emergency fund to help you handle future instances like this. The issue is that this is easier said than done and generally takes a long time to do.
In the interim, if you find yourself in need of extra funds, small short term personal loans may be able to give you the boost you need. If you do your research, don’t overextend your finances, and pick a borrowing option that’s right for you, you may be able to get out of the sticky financial situation you’re in relatively unscathed!
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