These are typically personal loans that allow you to borrow a smaller amount. You then pay back the amount borrowed, as well as any interest, in time. The short-term loan may have smaller borrowing amounts, which range of a few hundred dollars to thousands of dollars, and are repaid over a shorter period as opposed to a longer-term loan. These loans can also be secured, which means they do not require you to provide collateral. The eligibility for a short-term loan is typically contingent on your credit history as well as your credit score at the time of application.
When to Consider a Short-Term Loan
What could a loan for a short period can be beneficial? The unexpected or the new expense could cause you to think about borrowing alternatives. The birth of a baby, an expensive home or car repair, wedding or funeral, or other emergencies may require a short-term loan to help cover the extra expenses while still making the ends meet.
Types of Short-Term Loans
There are a variety of short-term loans you can consider dependent on your budget, income, credit, and other requirements.
Lines of Credit
If you’re not certain the amount of money you’ll require to get, a line credit might be the best alternative for you. With the help of a line credit you will get access to the funds you required within a set credit limit. This can be particularly useful in the event that you’re not sure of the amount an emergency expenditure will cost upfront. There is a chance to repay the loan in one lump sum or over time in installments.
Payday loans are loans with a short term that permit you to access money quickly. Sometimes, they need full repayment, with interest when you next payday. These loans are an unwise choice since they typically have interest rates more than other kinds of credit. As per the Consumer Federation of America, payday loans typically have a APR of 400% or more plus. This could pose a significant risk to your budget and, possibly, your credit score when you get the loan on payday and get into difficulties paying it back in time. Take this decision with care.
Installment loans are one type of loan with a short term that will permit you to take out a lump sum in a short amount of time. Contrary to payday loans, installment loans usually have regular monthly and weekly installments with lower rates of interest. The flexibility offered by installment loans can be beneficial however it could result in difficulties if you aren’t able to keep the deadlines for repayment.
How to Get a Short-Term Loan
Short-term loans can be obtained at lenders like banks credit unions as well as other loan providers. Based on the location you select to receive your loan, various loan amounts, fees, time frames for repayment, and interest rates could be applicable. Being eligible for a short-term credit will depend upon the lending institution. Some lenders will require details regarding the details of your credit background, credit score, or an income verification to determine if you are eligible.
Standby Cash is an account of credit which could be available for you today. Log in to the account of your Huntington accounts online, or through the mobile app to determine whether you’re eligible. You can get up to $1,000 with only a few clicks. It’s also cost-free (meaning no charges) when you make automatic payments and you’ll be charged 1% per month. fee (12 percent APR) applies to your unpaid balance.
To be eligible to be eligible for Standby Cash, you need an individual checking account with consistent monthly deposits of at least $750 for three consecutive months and a daily average amount of $200 or more within the checking account. When you use Standby Cash, your credit score is not a factor in your eligibility and once accepted within a couple of clicks online , it’s ready to you immediately. When you sign up for Standby Cash, the account and the activity you make will be disclosed to credit agencies. This means that the use of your account can have a positive or negative impact on your credit score.
Although Standby Cash is not overdraft protection, Huntington customers can leverage it to clear an overdraft. If you keep an overdraft for longer than 24 hours you are not eligible to use Standby Cash. Make sure you be aware of your financial situation to avoid an overdraft from happening and to avail every chance to swiftly correct the situation when it happens.