Short term finance is usually smaller amounts of money that are paid back in a short period of time, which is usually less than a year. These can be extremely useful for people in a variety of different situations. Here are some of the many types of short term finance that are available today, so read on to find out more.
Short term cash loans
These are usually very small loans that allow people to have very fast access to cash. They are much smaller in size and therefore are not subject to the strict criteria of other lending products. Companies like Short Term Loans 60 offer these loans and they are absolutely perfect when you are a little bit short due to something unexpected happening. For example, your car might break down and you are waiting to get paid but don’t have the money to immediately fix the car. A short term cash loan would be perfect in this instance and you could easily pay back the loan when you get paid.
Credit cards
Credit cards are cards used to purchase things and also withdraw money. They normally have a pre-determined limit that you can use, for example a limit up to $2000. Credit cards can be useful when you use them properly and clear the closing balance each month, and this way you pay no interest on them. They generally have a high rate of interest and can incur extra charges if you do not pay on time. These are quite useful if you are certain of your spending habits and know that you can pay off the card each month. Usually they will also have a yearly fee to use, so it is important to be aware of this too.
Overdrafts
These are cash facilities that allow you to overdraw your bank account, usually up to a pre-determined amount. These can be useful if you do not have the cash at the time and will mean that you do not incur extra fees for overdrawing your account, and these fees can be quite high. They are subject to approval by banks or credit associations. The criteria of which can vary greatly depending on which one you would apply with and if you are considering one you should look closely at all the options and conditions present.