A short-term loan is one solution to an immediate financial problem. Many people once in a while encounter a cash emergency when they have reached the last few dollars in their bank account, but have more expenses before they will receive their next paycheck. No one wants to default on a financial obligation, so the question becomes "who can I borrow money from?" A short-term loan is generally funded quickly - within a few business days - with the expectation that the borrower will repay the loan on the day they receive their next paycheck. Short-term loans can be found at stores in certain states or at online lender websites.
Typical Online Short-term Loans
Many lenders advertise short-term loans ranging from $100 to $1,500. A typical realistic loan amount for a first-time borrower is $300-$500. Requesting a lower loan amount will make it easier for a first-time borrower to find funding online. As a general rule, you should request the lowest amount that you need immediately and make every attempt to pay back your loan as quickly as possible. Both the speed at which online short-term loans are processed and the chance that lenders take by approving "risky" borrowers tend to add up to higher than average finance fees charged.
Uses for Payday Loans
- To pay for an emergency car or home repair.
- To pay for a doctor bill or other medical expense.
- To pay for an unexpected bill, such as an unusually large phone bill.
- To prevent your checking or savings account from being overdrawn; avoiding high bank NSF fees.
- To cover a check that you don't have adequate funds for; avoiding multiple bounced check fees.
Understanding the Lending Process
The application process for an online short-term loan is similar to that of applying for a traditional bank loan. The lender will request basic information needed to assess the risk of the borrower and to process the loan. Be sure that when you fill out an application that requires you to provide personal information over the internet that the lender has a secure webpage. You will notice that the url on the application page is preceeded with https:// - the "s" indicated the the webpage you are on is secure and that the information you are submitting is done so in a safe environment. Some lenders also have security seals on their website that indicate the the site has been verified by a 3rd party. Click on the security seals to make sure that they are legit.
Every piece of information that a lender requests on the application form is requested for a reason. It is necessary information the the lender needs to make the decision of whether or not to approve the request to borrow funds. Not filling out an application completely, or entering false information will likely result in a denied loan. If you are unsure why a certain piece of information is needed, or don't feel comfortable providing that information, please call us so that we can help. If you don't provide a correct phone number or driver's license number, for example, you will most likely be denied immediately.
There are many reasons why people need small amounts of cash in a hurry. Mostly, short-term loans are used by borrowers for the following reasons:
Why Choose Iggy Loans
- Funds should be available by end of next business day depending on your bank.
- The process is quick, discreet, secure and you can apply online 24 hours a day, 7 days a week.
- No credit checks are needed.
- Easier than qualifying for a bank loan. Faster too!
- Borrowing from family, friends, and co-workers can be uncomfortable. Iggy Loans is all business.