Short-term loans are loans that are pay back over a short time. They can be used in cases where borrowers need short-term infusions of cash, such as when people borrow short-term loans for short-term bills.
Short-term loans are very short-term and short loan amounts. They generally reflect the borrower’s paycheck cycles and personal expenses, such as paying bills or groceries. Short-term loans can help smooth out cash flow problems caused by irregular income streams, times of job loss, medical emergencies, unexpected financial needs, etc…
Short-term loans are typically unsecured and do not require collateral for approval. People with bad credit or no credit history often look into short-term loan products because they don’t have anything of value to put up as security against borrowing money.
Your income level will determine how much short-term loan you’re approved for; however, most short-term cash advances range between $100 and $1000 dollars.
Short-term loans are usually smaller than other types of consumer installment loans because they are earmarked to handle the borrower’s short-term financial needs. The typical short-term loan is paid back within six months or less. Loans that last 18 months are called “long-term loans”.