Whether you’ve fallen behind on credit card bills, want to fund a trip, or simply need some extra cash to tide you over until your next pay, there’s nothing like having a financial “lifeline” to assist you. While some might have an emergency stash they can tap into, many need to look outside for a little financial support. It is quite common in this instance to apply for a loan.
Though it is true that a loan is considered a debt, when used correctly it can prove beneficial. Here’s a look two major benefits in applying for a short term personal loan:
- Loans can be good debt – As long as you’re not in default on the loan, it is actually good debt to have. As the loan amount and frequency of pay will be displayed on your credit history, this shows creditors that you can be trusted with a considerable amount of money.
- They get you out of a jam – Short term loans are great for getting you out of a financial jam. Because the stipulations are not as strict as a traditional bank loan, you can typically receive approval along with the funds deposited into your account within 1-2 business days.
Choosing the Best Lender
Now in order to capitalize on these benefits of taking out a short term personal loan, you must first choose the best lender. There are a ton of companies out there to choose from, so it can get a bit tricky. Keep these tips in mind as you search for the right lender:
- Legitimacy – Unfortunately, there are a lot of scams out there and fake sites in which thieves are simply trying to collect your personal information for their own use. Therefore, the first thing you want to do is determine whether or not the lender is legit. Some ways to do this would include:
- Search the Better Business Bureau – The Better Business Bureau allows you to search for companies across the US. Simply type in the name, URL, or information you have on the lender to determine if they’re legit.
- Check social media – Another avenue for determining if a company is legit would be to check social media outlets. For example, if you were interested in a company like MaxLend loans, you can find MaxLend Information on LinkedIn. Review their contact information to see if it is a legitimate address and phone number.
- Reputation – Once you’ve determined that a company is legit, the next thing would be to determine whether or not they’re a good company to receive a loan from. Consumer reviews will be your best bet when determining the reputation of a company. While you could always check out review sites, you can also look to social media, such as the Twitter account of lenders like Max Lend Loans, to see what real people have to say about the business.
Being a Responsible Borrower
The final component to reaping the above mentioned benefits of obtaining a short term loan is to be a responsible borrower. It is quite common for individuals to simply click agree to get the cash, but in order to keep this debt from becoming negative or a burden on you financially you’ll need to do the following:
- Read the contract entirely. In order to understand the amount of interest, number of payments, and other stipulations, you must read the contract entirely.
- Only take out what you can afford. You might be tempted to take out the maximum amount allowed but if you can’t afford to pay it back in the time you agreed to, it is best to take out a smaller loan.
- Pay timely. It is important to pay as you agreed so that you don’t accrue late fees and higher interest rates.
- Communicate when trouble arises. If you cannot stick to your arrangement, be sure to communicate this to the loan company instead of ignoring them and the payments. If you’re in a serious bind, you may want to look into getting help with your bad credit so that you can start to clean up your credit history.
Short term loans sometimes get a bad rap, but the truth is they can be a great help. If you’re in a jam, be sure that you keep all the above factors in mind. Search for a reputable service provider and be a responsible borrower. In doing so, you create a lasting relationship with a lender – just in case you need their services in the future.
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