Having been approved for a loan, you are now determined not get strapped or buried once again in debt. You have reconciled yourself with moving forward and are diligent and responsible in paying your bills and commit to saving enough to keep you from incurring more debts in the future. And with this freedom comes the fact that you can easily apply for both long term and short term loans.
So how exactly can you differentiate a short term loan from a long term loan?
A short term loan is a loan that is unsecured. Meaning, this is the type of loan that does not need or require any collateral as a security pledge. There of course, strict prerequisites or qualifications that a loan applicant would need to have in order to be approved for a short term loan. First is that you need to be a valid citizen who has a permanent job that has been lasting for at least six months. You also need to have a bank account that the creditors can transfer money to. Short term loans can be as low as $200 and can be up to $25000. Interest rates also tend to be higher on short term loans. For relatively small amounts (up to $1500) the loan tenure is thirty days; but this can be extended if the borrower would not be able to pay the money back on time. Long term loans on the other hand, are classified as such when a borrower applies for a loan that is above $5000. This can be paid over an extended period of ten years.
These days, you can easily and quickly apply for loans and additional credit through the internet. Applying online generally does not require an applicant to provide documentation or paper work. All that is required is that you provide your age, complete name, bank account information, address, contact numbers and address. The loan company will check and run a background check on the information that you provided and if all information has been completely verified, you will soon be wired with the money.
These days, there are also a lot of people who use short term loans to pay off utility bills (phone bills, rent, consolidated debts) as well as other small household or personal expenses. For people who have existing arrears or even CCJs, you would still be eligible for short term loans regardless of your credit score.