The amount of monthly income is essential to everyone’s life, without which they would not be able to dress, feed themselves and their families and live a full life. However, monthly profits are not always sufficient to purchase a variety of important items. What to do when your funds are scarce and you need to make purchases?
Short term credit can help!
What is it like to know when this type of loan is the right choice and what to remember before borrowing it? This is what we, the lender Bertram family, have put together! Keep reading and find out!
The importance and application of short-term is often misunderstood and used for unintended purposes. It is important to know for what purposes it is best used and how to assess whether a short term loan is really needed at this time.
What is Short Term Credit?
Short-term credit is granted by bank or non-bank lenders. Initially, with the introduction of this type of cash option, lenders defined short-term credit as a generic term for a particular line of credit that is repaid within a relatively short period of time, but nowadays the terms have changed and sometimes the repayment term is also longer.
When to Borrow?
To make it easier to understand when short term credit will be the right solution, but when to choose another type of loan or not to go to lenders at all, we have prepared a compilation of key situations where short term credit can help!
For unplanned, urgent spending
Above all, situations where it is advisable to obtain short-term credit are unplanned, unpredictable spending, without which life would become very troublesome or even endangering. These are, for example:
- purchase of medicines. An unscheduled visit by a doctor who prescribes medicines you hear for the first time and which are not the cheapest;
- purchase of a product. An unexpected breakage of a refrigerator that you have not left in time for a so-called “airbag” to help you in situations like this.
If the monthly salary is not enough
It should be remembered that this is a good reason only if it does not happen regularly, but only once. For example, this month, electricity prices have risen sharply, or have you consumed much more water, which has significantly increased the costs you definitely need to cover.
How is it different?
Short-term credit and long-term loan differ in many ways. The main three are:
- conditions for paying off the loan. Although in both cases it is necessary to indicate monthly income, settlement of documents in the case of a short-term loan will be much easier, as neither a pledge nor a guarantor is required;
- opportunities to get a loan. How you apply for and obtain short-term or long-term credit is essential. Short-term credit, also offered by non-bank lenders, can be obtained by saving time, which facilitates the receipt process;
- loan interest rate. If, in the case of a long-term loan, the interest rate that will be used for your monthly repayment is often close to ten percent, the short-term loan you first decide to get with the lender in question will probably have to be repaid free of interest. More precisely, it means giving back exactly as much as you borrow.
Before entering into a contract, read all the information available to avoid disappointment when paying off your loan!
Why is it important to know the rules?
Often, due to recklessness or time saving, you have to overpay later, don’t you? Therefore, before making a loan, we advise you:
- check all publicly available information about the lender;
- read all the terms of the contract to know all about the terms of the refund;
- consult with a particular lender’s staff as both short term and long term repayment loans can raise a variety of questions that customer advisors will be happy to answer.
We, the lender of the Bertram family, remind us to think before we decide that short-term credit is the real money-grabber. Borrow responsibly, assessing your chances of repayment!