Every now and then there may be a time when you need to get access to money quickly for a short period of time. This is where short term lending can be especially helpful. It is there in case of emergencies, and isn’t designed to sustain you for a long time. A good example is an unexpected car repair. Here are some options if you need to get a short term loan.
The first option you may want to consider is using the cash advance feature of your credit card. Many people don’t realize that most credit cards do offer cash advances up to a certain amount. All you have to do is go to an ATM machine with your credit card and get cash. The interest rate on this cash is usually about the same as your normal credit card, but be aware that some cards do charge fees or higher rates.
Another option could be payday loans. Unlike using the cash advance feature, for a payday loan, you must go to an actual lender. The lender will then have you write them a check for the amount you need to borrow plus interest and fees. If you don’t pay back the loan, the lender can cash this check. Payday loans typically have much higher interest rates than traditional cash advances, and they usually have more fees associated with them as well.
Peer to Peer Lending
Peer to peer lending is a relatively new option for getting a short term loan. There are now several websites where you can post a description of what you will use the loan for, and individuals will bid on your loan. Based on your credit rating and other factors, investors will choose the rate and amount. If your loan is funded, you will get the amount wired to your bank account within a few days.
Peer to peer lending can be great for larger sums, and they usually have longer repayment periods as well. However, they tend to be slower than the other options, so if you need immediate cash, they may not work.
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