If you need some emergency cash, you may be considering an online short term personal loan. These loans can be a good way to get the money you need for an unexpected bill, or any other situation in which you need some fast cash.
However, there are quite a few myths about online short term personal loans. In this article, we’ll take a look at a few of these misconceptions, and give you all the information you need about short term online personal loans.
1. You Need A Good Credit Score To Get A Short Term Personal Loan
This depends on the type of loan that you take out. Some short-term personal lenders will perform a credit check, and they may deny you if you have a bad credit score, or a history of failing to repay your debts.
However, there are other online lenders that will not check your credit score. Payday lenders, for example, typically do not require you to provide any credit information. This makes a payday loan an ideal short term personal loan, especially if you cannot qualify for any other type of loan.
2. Online Applications For Personal Loans Are Confusing
This depends on the service that you use to apply for an online short term personal loan. But, for the most part, online applications are quite intuitive! You’ll simply fill out some basic information about yourself. In fact, most online applications for short term personal loans are easier than the paper applications you would fill out at a bank or another lending institution.
Depending on the service you use, you may also need to share information like your Social Security number, driver’s license number, and some other basic personal information. You’ll likely also need proof of income, as well as proof of address.
3. Sharing Your Information Online Is Unsafe
This is related to the above point. Many folks think that sharing their personal information online is unsafe. In some cases, this can be true. However, any legitimate lender will have a number of protections in place to protect your personal information. The information you share is stored securely, and usually sent over an encrypted connection.
This means that you don’t have to worry about any issues when sharing your information online – as long as you choose a reputable lender. Make sure that you verify the legitimacy of any online short term loan provider before you fill out an application.
4. You Need To Put Up Collateral For A Loan
This is not true. In some cases, it may help. For example, if you have bad credit, you could put up equity in your home to get a loan, or you could take out a title loan, based on the value of your car.
But short term personal loans and payday loans are typically unsecured. This means you do not need to put up any collateral to get a loan. The lender’s risk is higher – so you’ll pay more interest – but you won’t have to risk any of your personal property, in the unlikely event you can’t pay back your loan.
Consider Your Options – And Think About An Online Short Term Personal Loan!
Online short term personal loans and payday loans are great ways to get emergency cash. So don’t be fooled by these common misconceptions – take some time to think about your finances, your life goals, and your current situation to decide if a short term online personal loan is right for you.