Short-Term Loan: Advantages & Disadvantages⁣

Short-Term Loans: Advantages & Disadvantages⁣

Short-Term Loans: Advantages & Disadvantages⁣

What are the advantages and disadvantages of taking out a short-term loan? Lending Bear offers several short-term finance tools to help clients address cash shortages. Here, we’ll clarify the benefits and risks of using payday loans, pawn loans, title loans, and installment loans.

Short-Term Loan Options with Lending Bear

First, let’s explain what each of those loans are.

1. Payday Loans

  • Payday loans allow a borrower to get an advance on their paycheck. Our clients use these when they run into a tough spot and need a little help getting to their next payroll deposit.

2. Pawn Loans

  • Pawn loans let you leverage the value of your valuable household items such as computers, jewelry, televisions, lawn equipment, and so forth. You can pawn these for a while to obtain an equal-value loan.

3. Title Loans

  • Here, you can exchange the title for your vehicle or other asset to gain an even larger loan. As soon as you repay a pawn loan or title loan, the title deed or pawned item returns to you.

4. Installment Loans

  • You can use an installment loan to get a lump sum of cash along with much more repayment flexibility. As the name suggests, you would repay these in installments.

Short-Term Loan Advantages

These are the biggest advantages to utilizing short-term lending with Lending Bear.

  • The application process is way simpler than other credit options, especially traditional bank loans.
  • You can get any of these loans regardless of credit history.
  • The money arrives fast – often within minutes of applying.
  • It can help you pay off other high-interest debts quicker.
  • If your credit isn’t good, this is also a way to help rebuild it. Then, it’s possible you could qualify for lower-interest loans in the future.
  • They’re available for an emergency, even when you experience rejection from other lenders.

These are the primary advantages. Are there any drawbacks to short-term borrowing?

Disadvantages & How to Overcome Them

There are a couple of disadvantages to short-term financing, but you can avert most trouble if you comprehend how they work.

The most common complaint against short-term credit is the higher interest rate. While it’s true that we cannot call these “low-interest loans,” it’s not fair to consider these exorbitant, either, because there are other credit options that exceed them. Certain credit cards and personal loans carry higher and more variable interest rates, when used long term.

Another criticism of short-term credit is the possibility of one’s debt load spiraling out of control. While it is possible, it’s hardly limited to short-term lending. There’s plenty of consumer data that show the same risk potential (if not worse) among other credit lines.

As usual, it’s important for any borrower to comprehend what they’re doing before taking out any loan. If you’d like to learn more on this topic, don’t forget to check out this older post on why it’s better to use a short-term loan over bouncing a check.

Get Fast Cash for Short-Term Problems with Lending Bear

Hopefully, you’d rather solve your problems than go bankrupt or allow checks to bounce. That’s where we enter the equation. Lending Bear can help you access small sums of cash faster than any other company.

Our business complies with all financial regulatory laws at the state and federal levels. We can also vouch for top-notch customer service with our long list of glowing testimonials. That includes a 4.9/5.0 star rating on Google Reviews from previous clients with similar money woes.

So, if you’d like to learn how to obtain a short-term loan (without long waits and hassle), then contact Lending Bear today for outstanding financial service.

Google Rating
Based on 6829 reviews
Google Rating
Based on 6829 reviews