Top 5 Options for Short-term Loans

Short-term loans are obtained to finance temporary business or personal needs. Their repayment period is usually short, with little to no collateral requirements. There are various short-term loans with varying features, terms, and eligibility criteria. Discussed below are the top five options for short-term loans.

1. Express loans
   • An express loan is a form of payday loan meant for those in need of quick cash. It provides a simple approval process, usually with flexible repayments and minimal requirements. Express loans are designed to offer fast financial relief for emergency expenses. Opting for an express loan comes with numerous benefits, including the following:
     • Accessibility: Express loans are ideal for different credit types, providing opportunities to borrow even to those with limited credit history or bad credit
     • Speed: With express loans, you can have money transferred into your account within minutes or a few hours, depending on the lender
     • Flexibility: Unlike traditional loans, express loans usually have flexible repayment options and more lenient qualification requirements
     • Simplicity and convenience: Express loans have streamlined application processes and minimal documentation requirements, making it easier to apply for these loans online. You can apply via a mobile application or lender’s website, ensuring a fast, convenient experience
2. Credit card cash advance
   • A cash advance is a short-term loan against your credit card’s limit. The amount you withdraw or transfer will reflect on your credit card statement. Cash advances have a higher APR (annual percentage rate) and may incur a fee. If your credit card allows cash advances, you access money through:
     • An ATM: Withdrawing money from an ATM needs a physical card and a PIN issued by the card provider. You may be susceptible to withdrawal fees and limits
     • Convenience check: Your credit card provider can offer you convenience checks connected to your credit card account
   • You can also access a cash advance in person from a bank branch using your credit card. Failure to repay your cash advance on time can harm your credit. Paying back the loan within the set timelines can help protect your credit score.
3. Auto title loans
   • Auto title loans are secured short-term loans that allow fast access to cash using your car as collateral. You can qualify for this type of loan even if your credit score is poor or you have no credit history. Auto title loans offer numerous rewards, such as:
     • No credit check requirements: Most auto title loan providers don’t run credit checks on borrowers, making the loans accessible to everyone, regardless of their credit score rating. Your vehicle’s value determines the amount of money a borrower gets
     • Fast access to cash: Vehicle title loans allow you to access money fast, usually within hours of your application
     • Flexible eligibility requirements: A borrower’s eligibility for a car title loan primarily depends on car ownership and its worth. You can qualify for a title loan provided you’re the vehicle’s outright owner and possess a valid title
     • You can continue using your car even after getting the loan: Vehicle title loan providers only need your car’s title as security for the loan. This allows you to continue using the vehicle as you pay back the loan
4. Lines of credit
   • Lines of credit are preset borrowing limits banks and other financial institutions provide to businesses and individuals. The limit on your line of credit depends on your creditworthiness. Lines of credit (LOC) have a preset amount of money you can borrow as needed, repay, and borrow again. Some lines of credit issue debit cards, while others let you write checks to access the credit available. There are two kinds of lines of credit, including the following:
     • Secured lines of credit: It’s where borrowers use assets like homes and cars as security for the loan, resulting in better loan terms. Failure to repay the loan on time can lead to the lender taking your asset to recover their losses
     • Unsecured lines of credit: These loans don’t require collateral. Securing a LOC loan isn’t easy, provided you have an outstanding credit rating or a well- established business
5. Pawn shop loans
   • Pawn shop loans are quick loans that allow you to access instant funds in exchange for items such as jewelry as collateral. The providers of these loans hold onto your asset until you can pay back your loan, usually within an agreed period. Pawn shop loans are easy to qualify for and allow you to get cash quickly. Failure to repay your loan on time can result in a lender selling your asset to recover their money.

Endnote

Short-term loans come in handy in times of emergencies. Familiarize yourself with the top options for short-term loans to find those suitable for your needs and financial condition.