Let’s say you have found yourself in a financial pickle. The car has unexpected repairs, there is an unexpected death in the family or one of your kids has just called and they are about to get their power shut off and they are begging for your help. These are all very real situations that every day people find themselves in all the time. These are not situations caused by bad financial decisions….they are life happening and break-neck speed and sometimes, it’s hard to keep up. So what do you do when life happens and you don’t want to go to a big money lender for a small loan? The answer may lay in finding a short term personal loan lender.
Although short term loans are fairly popular these days, many in mainstream America don’t understand how to even go about obtaining one of these convenient loans. Until recently short term loans have gotten a bad rap with many believing that they are reserved for those who are downtrodden. The truth is a short term online loan can be useful to anyone in a crunch. But where do you begin?
- Know Your Credit Score – credit score can affect the amount you can borrow and the rate you receive. There are a number of places online one can go to find out their credit scores. You are also allowed one credit report per year from the major credit score managements firms like FreeCreditReport.com.
- Have Your Paperwork Ready – While most short term lenders don’t require a lot of paperwork they will ask you for some depending on your circumstances. You will more than likely need a recent paystub, a piece of mail with your name and address on it (proving where you live) and your photo ID. Without these key pieces you could delay your loan.
- Start Off with Local Banks or Credit Unions – Local banks and credit unions have much lower rates but a higher credit requirement. You can begin with this avenue but keep in mind that it may be easier to find a loan online.
- Look for Online Lenders If Your Credit is Not Good – Many online creditors accept lower credit applicants. If you have poor credit this may be an option. Don’t give up just because your credit score needs some work.
- Compare Rates and Fees – Everyone is different and this applies to credit lenders too. Make sure that you check out and compare rates and fees. Also make sure that you check for any hidden fees.
- Do the Research – Find out what the maximum amount is that you can borrow in your state. Every state has different laws and rules when it comes to online lending. Most often these limits are published on the lenders site.
- Submit Your Application – Once you have submitted your application you will get feedback from the lender right away about your request. Many will allow you to ask them questions or have the resources on their website to help you understand things such as terms, pay back options and the like.
- Check to See If You Can Do Payment Bi-Weekly vs Monthly – The interest rate may change depending on how you pay back your loan but for some bi-weekly is better. The overall finance charge can also be cheaper if you are able to do payments bi-weekly.
- Read Most Recent Reviews From Actual Borrowers – These days everyone gets reviews and who better to tell you about a service than someone who has already used that service. Be mindful though because there are sites that pay reviewers for god reviews.