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How Can You Judge The Feasibility of Short Term Financing?

by Kyle Berks · 0 comments

It’s quite obvious that when your paycheck isn’t sufficient enough to sail you through difficult times (meaning financial emergencies, here) you need to turn to other resources for help. You can either ask your friends for help or apply for a loan to meet your needs. But, here too, lie certain problems. Firstly, its not always necessary that all of you all out there have friends or relatives who are close enough to be consulted during financial emergencies and even if they are, there is no reason to believe that they will also have enough funds to help you with, during stressful times. Secondly, borrowing from a traditional lender has its own problems as well. There are chances of you being turned down if you don’t have the desired credit scores and since traditional lending involves lengthy credit checks, the money thus lent takes a long time to arrange. As a result, short term financing turns out to be one of the most potent sources to turn to when you are cash strapped but still have urgencies to meet. In spite of that, can short term financing be treated as a feasible borrowing option?. Let’s find out.

Aspects Of Short Term Loans That Make Them Popular

While the traditional lenders don’t entertain loan requests very easily, payday lenders have made sure that the borrowers find it incredibly easy to apply for and secure payday loans. If you apply for these loans and get approved then the money will be credited to your account within 24 hours. The application process is very simple and you don’t even have to fax your documents.  The simple eligibility criteria is documented below:

  • You have to be at least 18 years of age to qualify
  • You should have a regular source of earning in order to prove that you can repay your loan.
  • You should have a saving or checking account in your bank

Are They Really Feasible?

Though securing same day loans remains easy, it should be remembered that they come with very high rate of interest with the APR even touching 400 percent. Therefore you should only take them if you’re sure that you can pay them back on time. A rollover may cost you dearly as there are chances of the rate doubling with a single extension. So as a potential borrower you must know that judging the feasibility of short term financing remains a dicey proposition. So read the terms and conditions carefully, shop around a bit to compare the rates of interest offered by different lenders and then settle for the one who is offering duly competitive rates.

It should be specially mentioned here, that its not advisable to pay heed to each and every claim made by the payday loan advertisements. For instance, if you have heard that you can secure military payday loan, you should dismiss those claims as they are prohibited by all the branches of the United States Military Service and also by the general law of the land.

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