According to a recent report, very few Canadians have emergency funds set up. As a result, there are a lot of people who aren’t prepared to cover the costs associated with any unexpected expenses that might pop up.
Do you have any money set aside for a rainy day? If not, you might find yourself in a world of financial trouble in the event that you need to pay a bill that comes up out of the blue.
Fortunately, short term loans can be used to cover any costs that might catch you off guard. And what are short term loans? Well, they’re essentially smaller loans for under $1,000 that’ll provide you with fast cash and call for you to repay them within a matter of just months.
The best short term loans will provide you with so many benefits. But even still, you should consider all the pros and cons of short term loans before trying to take out a loan and secure fast money.
Find out about the pros and cons of these online loans below.
Pro: Fast and Easy
If you’re in a position where you need to get your hands on cash fast, you aren’t going to be able to wait around for a loan to get approved. You won’t have to when you apply for one of the many short term loans that are out there for you.
A lender like EasternLoans will make applying for a short term loan a quick and painless process. Just provide some basic information about yourself, your employment status, and more, and they’ll respond almost immediately to let you know if you qualify for a loan.
This makes short term loans the perfect option for anyone looking for fast loans in Canada. You’ll be surprised to see how quickly you can secure the money you need after filling out an application.
Con: High Interest Rates
While you should be able to get a short term loan fast, it could come at a cost. Many lenders will increase their interest rates on fast loans.
This isn’t necessarily going to be a bad thing, though. Since you’re going to have to repay a short term loan pretty quickly anyway, you shouldn’t end up having to spend a small fortune on the interest associated with a short term loan.
When you look at it like this, you might be able to avoid this con when you take out a loan from a reputable lender like EasternLoans.
Pro: No Credit Check
If you don’t have a great credit score, you may be under the impression that there isn’t any possible way you’ll qualify for short term loans. But guess what? This might not be the case!
Most short term loans are also no credit check loans. Because of this, you will be able to get approved for one in most cases without having to let a lender take your credit score into account.
If you know that your credit score might prevent you from qualifying for other types of loans, it’ll be nice to know that you can fall back on short term loans.
Con: Short Repayment Period
Just prior to taking out a short term loan, you should come up with a repayment plan for it. Reason being, you aren’t usually going to have a lot of time to pay back this kind of loan.
Oftentimes, a lender is only going to give you a matter of months to repay a short term loan. So you’ll need to be ready, willing, and able to do whatever it takes to get things squared away with them.
This is another con that might not turn out to be a con at all. As long as you’re able to figure out a way to repay a lender, you can keep the interest that you’ll pay on a short term loan on the lower side while also getting a loan out of your hair as fast as you can.
Pro: Readily Available
There are many Canadians taking out loans these days due to the current state of the economy. This has led to an increase in the total number of lenders willing to give out short term loans.
You will be able to take full advantage of this when you take out a loan from a lender. You can shop around for the short term loans that come with the best terms and pick out a loan that you know you’ll be able to afford.
Con: Late Fees and Other Penalties
Is there any chance that you might struggle to repay a short term loan? If so, that could come back to bite you later on.
You might begin to get hit with late fees and other penalties if you don’t stay on top of your loan payments. This will be a con, but it should also provide you with all the motivation you’ll need to make things right with a lender.
Interested in Taking Out Short Term Loans? Apply Now
Now that you know about the pros and cons of short term loans, you should be able to decide if one would be right for you. More often than not, people will find that these fast loans will work well for them when they’re in a financial bind.
EasternLoans can help you obtain the short term loan that you need. We’ll also work to provide you with the best short term loan terms that we can so that you’re able to repay your loan without any problems.
Get in touch with us today to discuss your short term loan options.