Is a short-term loan right for you? These kinds of loans have some definite benefits: the application process is quick and easy, you typically don’t need collateral, and if you pay it off on time it can boost your credit rating significantly. But such loans can also have drawbacks: they typically have higher interest and if you can’t pay the loan back it can send your credit rating through the floor.
Here are 5 cases where a short-term loan might fit your needs:
1) Career Development—Programs, certifications, and schooling that enable you to learn new skills can pay dividends in your career. But these programs can cost several thousand dollars. If you don’t have that money in the bank, a temporary loan can empower you to enroll in the program and give your career a boost.
2) Car Repairs—Like home repairs, car problems can be expensive. If your engine fails, you can be stranded without transportation unless you pay thousands of dollars to repair it. A short-term loan, with a fast application and approval process, can help you fix this problem in days.