Borrowing money through a short-term loan can provide assistance for those who are dealing with a financial emergency. However, many people who have not obtained a short-term loan before might be curious about how it works before filling out an application.
What Types of Loans are Available?
The two main types of loans are payday and installment loans. Payday loans are paid in full when the borrower receives their next paycheck. Installment loans allow the borrower to make payments on the borrowed amount for up to six months.
How Much Money Can Be Borrowed?
Up to $2,000 can be borrowed using a short-term loan. The amount actually borrowed will depend on the type of emergency and how much the borrower actually needs to make it to their next paycheck.
When are the Repayments Due?
This depends on when the person receives their paycheck. Payday loans will be due in full with the borrower’s next paycheck. With installment loans, the borrower makes a payment each time they get a paycheck until the full amount is repaid.
Can the Money Be Repaid Before the Due Date?
Yes. A borrower can make larger payments so they’ll be able to repay the loan faster and won’t have to worry about it for as long. They should make sure they can afford larger payments before considering this option.
What are the Qualifications?
The borrower needs to be at least 18 years old, have a bank account, and have a verifiable income. They cannot be currently filing for bankruptcy or have another short-term loan when they apply. Other qualifications may be applicable.
How Long Does Approval Take?
Turn-around time is typically within a day of when the application is filled out. Many borrowers will receive an answer within a few hours and can receive the needed money the same day when possible. This all depends on the day of the week, the time the application is filled out, and how busy the lender is at the time.
If you’re in need of extra money to handle an emergency, make sure you learn more about short-term loans to see if this is the right option for you. Visit Blue Trust Loans now to learn more or to fill out an application to get the money you need.