Many people do not prefer to remain under the burden of loan for a long time. Therefore, they look for those type of loans that can be repaid back as early as possible. Besides that, if you opt for any long-term loan then you may end up paying a huge amount in the form of interest in addition to principle amount.
There are many different kinds of short-term loans that you can get from Swift Money short term loan. Certain short-term loans are meant to meet your emergency and urgent needs. Such loans are usually very low amount and you may need to clear them within 3 months. Such loans also do not need much time to get approved. Payday loan or online loans are this type of short-term loans. One must not delay too much in clearing such loan and that can also help in improving your credit ratings too.
Another kind of short-term loan is taken which can be repaid within 1 year to 15 years. This can be for buying car, any household appliance or repairing or renovating of the house etc. Approval for such loan usually take few days. You can choose your amount and payment terms as per your convenience. You can also reduce your financial burden by repaying smaller amount and extending the loan term.
If you can clear your short-term loan in timely manner then you will end up paying less amount in the form of interest although the rate of interest may be little higher. By paying lower rate of interest you can extend the loan period but you will end up paying higher interest component.
Another advantage of short-term loan is that you can get an opportunity to improve your credit score by taking small amount of short loan and repay them quickly. With improved credit rating you can apply for loan at lower rate of interest in future.
Few short coming of short-term loans
- You have to pay very high rate of interest though it may be for shorter period. Sometimes the monthly instalment can overburden you to manage your monthly budget.
- In case, you decide to repay back your loan earlier than schedule, then you have to pay a very big amount as penalty.
- If you fail to repay as per the agreed terms due to any reason then you have to pay very heavy penalty.
- Failing to maintain the financial discipline may lead you to heavy debt trap.