There are times when an emergency prop up that requires cash. If you have no savings, you could find yourself in a predicament. Borrowing from relatives and friends could be your first option, but with everyone affected by inflation, you might not get help even if there are people that want to help you. If you need cash within the day, taking a loan from a bank could take a day or two to process. Perhaps, taking a short term loan is the answer to your problem.

Here are some reasons to take short term loans for your emergency needs:         

You Can Apply for Online

Applying for a short term loan is easy because you do not have to hand in your application personally. You can browse the internet for lending companies that can lend you money payable in less than a year.

Before deciding which lending company to apply, check several offers first to find the best deal in terms of annual percentage rate and repayment terms and conditions. Choose a lender that charges the lowest interest rate and offers the most comfortable repayment options. Fill up the application form on the website by providing all the information that the lending company requires. Check if you have not missed and anything before hitting the submit button. Lending companies reject forms that are incomplete or not filled up correctly.

Fast Approval and Release

Most online lenders approve and release the funds on the same date of application. Urgent expenses such as repair of a leaking roof that you discovered when it rained the night or purchase of medicines for an unexpected hospitalisation could not wait for a few days. You must have the cash to pay for them.

By taking a short term loan, you can get the funds you need a few hours after the lender has approved your mortgage. You would receive the funds through your bank, and you can use the money immediately. When you borrow from banks and other traditional lending companies, you must wait for a few days to have the cash, which can be too late for some emergencies.

No Long Time Commitment

Thinking about debt can be stressful, especially when you are experiencing financial difficulties. Borrowing money for a short period would also mean you would only have a few months of worrying. If you are the kind of person that does not want to worry about debts for many years, short term loan will suit you well. The repayment period is short, and the lender would charge you less for the amount that you borrowed. Aside from paying less interest, you could look forward to being debt-free after a few months instead of many years.

Credit Score Is Not a Requirement

Lending companies that lend money for a short time are not strict when it comes to credit history. Even if you have a poor credit rating or no credit score at all, the lending company will approve your loan as long as you can pay based on the information that you provided in your loan application. One indicator of your ability to pay what you borrowed is your net income. You can arrive at this by subtracting your expenses from your earnings. Taking a loan when what you earn each month is not enough for your basic needs might not be wise.

For your urgent needs that require only small amounts, a short term loan is a good option. As long as you pay your debt promptly until you have paid up in full, you could avoid getting into a debt cycle. When you borrow again, you will enjoy a better deal and a more significant loan amount.


After I graduated from University with a liberal arts degree, I’ve discovered that I knew nothing of how one should interact with banks. How to read the terms and conditions that I was offered when requesting a loan, or how to create a functional monthly budget that would help me save money. Since then, I’ve applied for dozens of loans and have tested many methods that specialists claimed would help me increase my credit rating and get lower interest rates from lenders. Some worked, and some didn't however, the financial experience that I've gained has helped me get a fresh perspective on how one should interact with banks. I want to share my success stories, methods, and tips with everyone interested so that others will not have to go through the difficult experiences that I did.

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