A lot of people prefer considering short term loan when bank disagrees to grant them loan. Short term loans generally come with a repayment tenure of twelve months. There are a few more attractive features that short-term loan offers to people.
Handle any sudden urgency
There can be times when you are faced with financial emergency. At those times, a short-term loan help in handling the unfavorable circumstance. These loans are designed to deal with an immediate crisis.
Long-term loans need one to repay the amount at regular intervals of time for several years. Continuous repayments can be difficult due to issues such as accident, loss of employment, etc. Looking at this disadvantage of long term loan, it is wise to choose repaying short term loan within a small tenure. This would save you from carrying the burden of loan for a longer time.
Improves credit score
It is a good idea to make regular monthly payments for a minimum of 6 months to 1 year prior repaying the full loan. When you get loans from Argent Direct, you are provided with an opportunity to build good credit score. When choosing a loan lender, you must look out for a lender who is fast in processing the loan application and sanctioning the loan amount. Fast and simplified processing at Argent Direct, will help one get the loan amount on the same day.
Saves money which goes waste in the form of interest
By repaying loan amount within a specified small tenure, you save a considerable amount of money in the form of interest. A short-term loan may appear costly with high rate of interest but proves to be less expensive when compared with the interest you pay in case of a long-term loan at a low interest rate.
No need of collateral
One of the attractive features of short-term loan is that it doesn’t need one to present a collateral to loan lending firm. Also, you don’t have to live with an anxiety of losing an expensive possession in cases when you are not able to make repayment.
Considers applicants with low credit score
Many times, no or low credit score acts as a hurdle in getting the loan sanctioned. This often leads to disappointment in loan applicants. Most lenders who offer short-term loans takes application with low credit score into consideration.
They may inquire about the loan repayment capacity and employment status to repay the requested loan amount. Thus, short-term loan provides relaxed approach that lets several needy people with poor credit score go for such loans in trying times.
All these features make short term loans one of the most lucrative options to fulfill your financial contingency.