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In a Financial Bind? Consider the Benefits of Short Term Personal Loan

Jerry Kronenberg
  • Loans
  • 4 minute read

Short-term personal loans help to alleviate immediate financial binds by providing quick cash to borrowers.

Information sourced from: www.kwikcashonline.com

Most Americans have faced a short term financial burden at some point in their adult lives.  Maybe you’ve lost your job, you’re facing a major car-repair bill or rent is due tomorrow. Whatever your urgent situation, a personal loan can put cash in your hands when you need it most.  Sometimes situations like this can be worked around. Perhaps borrowing a little money from a family member or friend. But other times, there simply seems to be no solution.   Instead of paying the expense with a high-interest rate credit card, payday loan, or for people that never use credit cards, a short-term personal loan offers a way out.


What is a Personal Loan?

A personal loan is a type of installment loan.  An installment loan is a loan where you borrow a set amount of money all at one time. You then repay the loan over a fixed number of payments, called installments. Many installment loans also have fixed payment amounts, meaning the amount doesn’t change over the life of the loan — whereas if you have a variable interest rate that amount can change.  

Short-term personal loans are not for all situations but they provide more flexibility to consumers than payday loans too.  Since they are installment loans, they do not have to be paid back when your next paycheck arrives like a payday loan. So you can borrow more without feeling the pressure to pay it back in a short amount of time.   They help to alleviate immediate financial binds by providing quick cash to consumers. 

The overarching reason to get a personal loan is to increase cash flow and financial flexibility.  

Benefits of a Personal Loan

Here are some other benefits of a personal loan to consider:  

  • Fast funding – Most of our installment loans are approved within 24-48 hours.
  • Online Applications and Services – Almost all lenders have online applications and self-service payment features via their website.
  • Safe, secure & confidential – Lender online loan applications use industry-leading technology to ensure your information is safe.
  • Flexible loans for everyone – Not so great credit?  If you’ve had trouble getting loans in the past, you should look into getting installment loans. Many installment lenders are willing to give loans to people with low or bad credit scores, below a 601.  In some cases, lenders may not even run a credit check. They’d be willing to give someone a loan as long as they have proof of income or a valid bank account in the United States.
  • Personal loans are unsecured – An unsecured loan means that unlike a mortgage or auto loan, you don’t have to offer up property or assets to qualify. If you default on a secured loan, like an auto loan, you risk losing whatever collateral you used to back the loan. That said, the cost of unsecured debt is generally higher because lenders have no fallback if you don’t pay.
  • Flexible loans every situation – Lenders offer loans ranging from $500-$100,000 to help people with their short-term financial needs and the loan can be for a wide range of purposes.  Say you suddenly need to buy a new washer and dryer and don’t have the funds, a personal loan can be a great relief.  Small personal loans let you purchase major household appliances and electronics immediately, rather than having to wait months to save up for them.

Caveat Emptor…

Keep in mind personal loans are used for short term purposes and should not be used for long term financial resolutions. While there are plenty of good reasons to take out a personal loan, don’t forget that you will have to repay it. When you take out a personal loan to pay off credit cards or to throw the perfect wedding, you are borrowing money that will need to be repaid, with interest. Personal loans are a great way to consolidate debt and make major purchases but use them responsibly.