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Frequently Asked Questions

Frequently Asked Questions

Short term loans are seen differently by different people, so it’s possible you may have heard mixed opinions about this type of loan. Often those who view short term loans in a negative way are simply lacking information about the pros and cons.

Here you will find answers to several of the most commonly asked questions regarding short term loans.

Q: Define a short term loan.

A: A short term loan, sometimes called a payday loan, payday advance loan or a cash advance loan is usually taken out to cover short-term financial emergencies.

Q: What are the normal requirements for an individual to obtain a short term loan?

A: To obtain a short term loan, normally an applicant must be 18 years of age or older, employed full time and the holder of a currently active bank account. For example if you’re at least 20 years old and have a monthly income of over $1500, you have good chances securing a loan. $1000-1500 monthly income is also possible, but chances are lower.

Q: If my short term loan is approved, how long will it take me to get the money?

A: The Internet can be used to secure your loan within minutes. After that, it will be a matter of a few hours or days to transfer the money to your bank account. It’s all up to your bank how long it will take, some banks will take longer then others.

Q: Can I get a short term loan if I have a poor credit rating?

A: Your credit score is not a factor in securing a short term loan. Most probably you will not need a credit check prior to approval of your short term loan. This type of loan is an easy short term way to borrow if your credit rating is poor ornon-existent.

Q: How much money can I borrow?

A: A short term loan is usually issued for an amount of $100 to $1000, although this depends on a number of factors including your income every month, your short term repayment history and the policy of the short term loan company involved.

Q: Will the short term loan company contact the major credit bureaus regarding my application?

A: There is no communication between the short term loan company and the three major credit bureaus, since no credit check is necessary.

Q: Will I need access to a fax machine?

A: It depends. If the short term loan company in question offers “no fax” applications, your loan application process will be much simpler.

Q: What happens if I can’t repay the full amount of the loan in time for the due date?

A: Check with the loan company regarding their policy. Most short term loan companies do allow payment extensions.

Q: What other alternatives to short term loans are there for obtaining fast cash?

A: You may approach your creditor to negotiate an arrangement that will allow you to pay your outstanding bill. Alternatively, you may work with a debt consolidation company. Finally, you can try requesting an advance on your wages from your employer.

Q: What’s the difference between a tribal lender and a state licensed lender?

A: In wake of the credit crouch several years ago unsecured bank loans almost vanished from the traditional banking sector. Tribal lenders, working from within tribal lands, have a different set of rules to work with. Therefore they can offer loans to a wider range of customers. For example tribal lenders offer short term loans over 14 days, installment loans over up to 40 weeks and even line of credit more like a credit card. Payout can be made either to your bank account (ACH-transfer) or directly to your credit card. Both state licensed and tribal lenders can be a good choice when it comes to getting a loan.

Grace Chen
Grace Chen - Writer & Editor
A graduate of the Haas School of Business, University of California, which is one of the top three (3) business schools in the U.S., Grace Chen has 10 years of experience in this field and have been delivering stellar business content through her written word. She’s the chief editor of Communicate Better and has written and edited thousands of content published in various online and printed media, including the NYSE-sponsored research studies and MEC Global. Connect with Grace on LinkedIn, https://www.linkedin.com/in/grace-chen-9254ab8/