Finding Short Term Loans With Low Interest Rates
If you are thinking of getting a short term loan, it is only natural to want to find one with the best rates. Short term loans are known for having higher interest rates than regular loans with a low rate. So is it possible to get short term financing with low interest rates?
Why Do I Need A Short Term Loan Personal Loan or Payday Loan?
There are a variety of reasons why anyone will need a short term personal loan. As the name suggests, these types of loans have short repayment terms compared to installment loans. One of the most common short term loans available in Australia is a payday loan, which has terms of 2 weeks up to a month. Other forms of short term financing may have repayment terms up to one year. The maximum loan amount granted to borrowers is $2,000 but may be higher or lower, depending on the loan provider.
Here are several reasons why you will need a short term loan:
- To pay for unplanned expenses or settle a forgotten bill
- To bridge budget gaps when you are waiting for funds to arrive
- To tide you over until the next payday – you may have overspent and miscalculated your budget
Some people prefer to take out a short term loan to handle life’s little surprises. Short term lending is suitable for people who only need the extra cash for a few weeks, or maybe several months. If you are the type who prefers not to get stuck with repaying a loan for the next few years, then a short term loan may be just what you need.
How Do I Get For A Credit Like Short Term Loan?
The easiest way to obtain a short term loan is through a reputable loan provider like MagicLoan. Online lenders offer the most convenient and easy way to obtain short term financing. All you need to do is visit the lenders website, fill up a loan request form, submit, and wait for the lender’s feedback. In most cases, the turnaround time is a few hours to the next business day.
Before taking out a short term loan, ask yourself if you have exhausted all means to acquire additional cash. A short term loan can help you boost your credit score when used properly, but you must keep track of due dates to avoid late payments or delinquency.
Short term loans expose you to the following risks:
- Rogue lenders: Predatory lenders are everywhere; thus, it is crucial to know that you are working with a licenced and authorized loan provider in Australia.
- A cycle of debt: The ease of taking out a short term loan makes it easy to get trapped in a cycle of debt.
- Legal problems: A responsible borrower will not encounter any repercussions in obtaining a short term loan. But you may face legal issues if you fail to pay back your debt.
Borrowers should understand before taking out a short term loan that these types of credit have very high rates and fees. To avoid encountering problems in the future, it is best to understand the interest rates and repayment schedules of short term loans.
What Rates And Options Can I Expect From Short Term Loans?
Keep in mind that short term loans are one of the most expensive types of loans in the market. Despite this fact, many people still turn to short term loans because it is convenient and easy to get and have options for poor or bad credit.
In general, a short term loan in Australia not exceeding $2,000 will be charged not more than 4% per month. This may seem small but a little calculation shows that the interest rate totals 48% in one year. A loan amount of $1,500 with terms of 9 weeks will require a fortnightly payment of $396 (20% of the loan amount plus fees). The repayment amount includes the 4% monthly fee, but may not yet include the enforcement fees. You will also be required to pay additional fees for late payments.
Where Can I Find Short Term Loans or Other Personal Loans With Low Interest Loan Rates?
If you need money fast, the best option is to apply a short term loan from an online lender or loan broker. You may be able to negotiate for a low interest rate if you have a good credit score. An excellent financial track record qualifies you for competitive short term loan rates. However, in general, short term loans have higher rate of interest compared to installment loans and other low rate personal loan from mainstream lenders.
For sudden expenses that need immediate cash, you can also look at other options such as:
- Credit card cash advances or charge the expense to your credit card
- Financial assistance programs in the local community
- Government loan programs like a No Interest Loan Scheme (NILS) or low-interest loans
Being a responsible borrower also means working with authorized and legitimate lenders. Reaching out to a reputable and honest loan provider like MagicLoan can help you get the short term financing that you need in the quickest possible time.