20 Sep 2020   /   0 comments

What You Should Know About Various Short-Term Funding Options And How They Can Help You

Paul

While many people may be hesitant to apply for loans or other credit and financial products, there can be some astounding benefits to utilizing short-term financing options to make your dreams come true, or simply achieve your goals in a financially and timely responsible manner.

There are many reasons you may need a fast influx of cash, and there are financial products specially designed to help in these instances. If you happen to be preparing for a large purchase or trying to deal with an unfortunate financial emergency, there are some great reasons why short-term financing can help you. 

Short-term financing, or high-risk financing, can also help in other ways, such as allowing you to build credit or repair credit after you have had some unfortunate experiences. No matter what you need financing for, or how your credit stands, there are some great options available to you.

“Pay Day” Loans Don’t Have to be Scary

Payday loans are called such, as they are meant to only be held between the date of financing and your next payday. If you need a quick $500 to hold you over until payday and handle some unforeseen expenses, payday loans can help you. With multiple options available to get quick online loans, there is no reason you need to struggle. A payday loan is a short-term option that is meant to give you a cash infusion when you need it the most, and keep you going until your next payday.

While these loans are not for everyone, and they come with their own set of risks, such as higher interest and larger payments, if you plan ahead when you take out a payday loan, you can have it paid off immediately after your next payday. As with any financial product responsibility is key, and ensuring you can pay it back with your next paycheck is of the utmost importance.

Credit Cards for Emergencies

While it is not often recommended to use credit cards, sometimes it is necessary, and in the case of credit cards having one set aside for emergencies can be a lifesaver.

If you have unexpected vehicle repairs, or simply need to keep food on the table until payday, a credit card can be a good short-term funding option that won’t cost you too much and will keep you going when you otherwise would falter.

Using credit cards can be done responsibly, and as with any financial product it is in your hands to budget and plans ahead if you need to make a large purchase on your credit card.

Having available credit ready and able to use can give you a lifeline when you don’t have any other options. Nothing is worse than having your car break down and having no way to repair it. If you have a credit card with a smaller limit set aside for emergencies such as this, you will find yourself struggling less should an unfortunate occurrence befall you.

Short Term Bank Loans with Open Terms

Even people with great credit can find themselves looking for a short-term cash influx and this can be achieved by taking out a short-term loan or line of credit from the bank. Lines of credit from the bank can be great options for short-term financing, as they can be paid off without penalty and often have a very low-interest rate.

If you are facing house repairs, vehicle repairs, or other large purchases that will otherwise be difficult to confront, you can always speak with your bank about what options are available to you for funding such as this. Banks also offer term loans, and you can take one out to purchase larger items and make anywhere from 12 to 36 (or more) payments to clear the debt.

While term loans tend to be longer than the shorter-term options listed above, they can also be open, meaning they can be paid off at any time. This allows you to make extra payments and have the loan paid off faster than the original loan term, reducing the overall lending costs.

No matter what your credit situation or what you need the money for, there are many options available to receive the cash you need fast and have it paid off in no time. If you are struggling with financial concerns and planning, it can be a great idea to research and discover what short-term funding options are available, to help you meet your needs.

 

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