Tuesday, April 26, 2016

Short Terms Loans for a Rainy Day



The need for a loan can come at any time. It arrives without warning whatsoever. Fortunately, there are short term loans that can provide a viable and substantial solution to your problems. 

Unlike their cousin, the long term loan, they’re much easier to apply for, acquire and pay off. Here are several benefits and shortages you need to know before taking a loan.

Loans witch Easy to Process


Car title loans Fontana are very easy to come by, compared to long term loans that are usually acquired from banks and private companies. 

Most short term loan companies only require the amount of cash needed, the monetary value of the vehicle that’s being put up as collateral, and the ability of the client to pay, which can be checked through a variety of credit types.

There are also online processes available where interested parties can just accomplish a simple, no-fuss and easy to understand form and provide all the information in the quickest way possible. This means that individuals can get the cash as quickly as possible. And they can get fast loans from $2500 to $20,000.

In connection with online availability, that also means that the application process is not bound by store hours or business hours. Anyone can apply for a loan in the website and fill up the form, 7 days a week, 24 hours a day.

Looking For Smaller Interest Rates


Car title loans have smaller interest rates, compared to larger loans from other companies. This means that the expense in the long run is smaller and much easier to manage. You won’t have to worry so much with the payments you will have to make in the near future.

Short Payment Terms


One of the legitimate hassles of taking out a long term loan is that it takes several years, or even decades, to pay off. These are typically short. With just a couple of payments, you can pay off the debt and leave it behind.

With so many benefits available, it’s easy to figure out that short terms loans are one of the best answers to immediate financial concerns. This is one of the smartest options available, so make sure you explore this option and try it out during an emergency. You will not regret it. 

Technical Definitions


Long-term vs. Short-term debt
  1. Long-term debt -Loans and financial obligations lasting more than one year. Examples include home mortgages and student loans. Also known as noncurrent liabilities.
  2. Short-term debt - Debt due in one year or less. Also known as current liabilities.


Secured vs. Unsecured debt

  1. Secured debt - Debt backed or secured by collateral to reduce the risk associated with lending. An example would be a mortgage. Your house is considered collateral towards the debt. If you default on repayment, the bank seizes your house, sells it and uses the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered security, which means they can be claimed by the lender if default occurs.
  2. Unsecured debt - A loan not secured by an underlying asset or collateral. Unsecured debt is the opposite of secured debt. Unsecured debt carries more risk for the lender, which in turn makes the loan more expensive. The more additional risk that a lender must take on, the higher the rate of interest a borrower must pay, making unsecured loans subject to higher rates.

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