Short term loans bad credit may be one way of getting a helping hand if something unexpected comes your way and you find yourself short of money.
There may be many reasons why you find yourself short at a time when money is needed. Just because you might have made a bad decision in the past affecting your credit rating, it need not affect your future borrowing. A loan over the short term might be the answer to get you back on track.
What Is A Short Term Loan?
A short term loan is what it says it is, a loan taken out over a short period. When these types of loans first arrived in the financial market, they were given the name of Payday loans. This was because the loan would be repaid on the lenders next payday, typically in one month.
Today the short term loan has changed in that generally lenders offer it over repayments of between one and up to twelve months.
Understanding Short Term Loans Bad Credit
If you have looked at the APR of loans, you will generally find they have an APR of around 29% to 39%. The short term loan differs in that the APR may be more in the region of 200% and upwards.
While this may be startling when first looking at it, bear in mind that a loan over the short term is typically repaid back a lot earlier than a year, more often in just a few months. The typical loan with the lower APR is generally taken out for years, often up to 10 years. The high APR on the short term loan should not be seen as outrageously high or compared with that of the typical loan.
Things to Take Into Account before Applying
Before rushing into applying for a loan over the short term there are some things you might want to take into account, these are:
- The term of the loan – do you want to repay in one month or twelve months. The longer you take the loan out for the more interest you generally pay on the amount borrowed;
- Do you have a debit card attached to your bank account – generally the loan will be repaid by the lender charging your debit card when the repayment day arrives;
- Are you able to repay on the date agreed – if you cannot repay the loan on the date agreed this is going to go against you. Ensure you have calculated to allow for the repayment.
Why Do Lenders Offer Loans Over the Short Term to those with Bad Credit?
Not every lender may be willing to offer a loan over the short term for those with bad credit. However, many do and the short term loan is the one you are most likely to be approved. Here at Bonsai Finance, we can match you up with lenders most likely to offer loans over the short term for people with poor or bad credit ratings. We do not offer the loan directly; instead, we work with people who have bad credit and numerous lenders, all of whom base loans on income, not your credit history. In short, we can help you to find a loan by providing access to lenders, application that is simple and a loan that is affordable for you.
A the loans over a short term is designed to provide a helping hand with cash when needed and in some cases is one way of helping to rebuild your credit rating. This is due to the fact you will be seen to borrow money and pay it back on time.
If you want to go ahead and apply for short term loans bad credit contact us, Bonsai Finance. We can help you to find a loan that is affordable for whatever reason you find yourself short of cash in the short term.