Financing options can get a little confusing and there is a lot of technical words that are used, making it hard to understand for the normal person. I think that everyone should know a little bit about finance so I decided to make a short guide about some of the short term financing options that are available, so read on to find out more.
Short term loans
Short term loans are small cash loans that are intended to be paid back within a year. I recently used the Cash Advance 24/7 website and I was very surprised and it was great for getting a short term loan. It was very quick and easy and the amounts were not too large, which made it very quick and easy to pay back. This is one of the great features of short term loans, you can get smaller amounts and very quickly. They are so much faster because the criteria is lower (because of the lower risk) and therefore you can get your money faster and in most cases within a day! This is really great if you need a little bit of money and you are waiting to get paid. Examples of good uses for a short term loan are emergency medical expenses or car repairs.
Credit cards give you a certain limit (credit limit) from which you can make purchases with. These can be useful if you don’t have the cash right now, but are of course an ongoing credit facility. Credit cards are great when you pay back the owing amount each month, which will mean that you are not charged any interest for the previous month. This is a great feature to have and is great for smaller purchases that you might need during the month.
Personal loans are larger loans that are usually meant to be paid back within a few years. This is something that you might use for purchasing a car or making a smaller improvement to your home. Personal loans are usually only provided by banks or credit institutions and are good for larger purchases that require a little bit longer to pay back. As a result they are better than credit cards for these types of things.