While you may not struggle to make ends meet, finding the money you need to pay for unexpected expenses can be a real challenge. A short-term loan will help you get the money you need, but if you’ve never applied for one in the past, you may not be familiar with the ins and outs of these quick loans. At Advance U Cash in Florence, KY, their experienced team explains what these short-term loans are and when you should apply for one.
What Are Short-Term Loans?
A short-term loan is a small loan designed to help individuals cover unexpected expenses or surprise repair costs. These loans have short repayment plans in which the borrower is expected to repay the loan plus interest to the lender. Most short-term lenders expect borrowers to repay the loan in a few weeks, but that repayment term may extend up to 60 days.
When Would You Need One?
People apply for these quick loans for many reasons, but it’s typically due to an unexpected expense. If your car breaks down between paychecks or your child has a dental emergency that’s too expensive to pay for out-of-pocket, a short-term loan may be the best option. No matter the reason, there’s nothing to be ashamed of. Short-term financing is designed to make covering unexpected expenses more bearable.
When Is One Not the Best Option?
If you’re looking for a loan to cover a large expense like a car or a new appliance, you may be better off with a personal loan. This is because loans with short repayment terms have higher premium payments and potentially higher interest rates. The more you borrow, the higher the payments will be and the more interest you’ll pay over time. Short-term or quick loans are best left for small expenses that would otherwise strain your budget.
Need help covering an unexpected expense or need a little extra money between paychecks? Contact the team at Advance U Cash today. Their experienced team will help you find the right short-term loan for your needs, whether you have an unexpected car problem or need to cover surprise medical expenses. Learn more about their services online, and call (859) 746-2274 to discuss your situation.