One of the reasons why payday loans are alternately known as short term loans is because they are ideal for meeting short term or temporary financial urgencies. It is ideal for those who are able to borrow responsibly. Go further through the post in order to know what “borrowing responsibly” is all about.

Features of Short Term Financing

• The fast cash loans are taken out to cover financial emergencies like paying off medical debt, covering school fees, covering urgent car repairs, etc.
• Unlike the conventional bank loans, they can be accessed by borrowers with bad credit as well, as the lenders won’t be checking your credit history before lending you the money.
• They can be borrowed for a period of 15-90 days (generally). You can repay the entire amount on your next payday.
• Though you need not have excellent credit scores to qualify you would still require fulfilling the simple eligibility criteria.
• The money, once approved can be availed very quickly. The creditor will deposit the amount in your account within 24 hours of approval.
• They are very costly carrying very high rates of interest that generally hover around 10-15 percent.

Eligibility Criteria

In order to qualify for a fast cash loan you need to fulfill the following requirements:

• You need to be at least 18 years of age while applying
• You should have a savings or checking account
• You need to be a valid citizen of US

Who Should Apply for Them?

Only those with urgent financial needs (like those mentioned above) should apply for these loans. The ones who are sagacious enough to understand the implications of the high-risk loans and are serious about repaying them on time should seek their help. Short term financing is not suitable to tide over long term financial needs like paying off mortgage or long term debts. Borrow them only when you think that you would be able to repay your debt on time. As already mentioned above, short term financing implies that you are already paying up high rate of interest. A possible rollover, in case of a default would mean high accumulation of rates of interest that in turn might result in expenses escalating out of control.

Thus, applying for short term financing would not be prudent if:

You are not judging your need properly- they should strictly be meant to fulfill urgent needs. They should not be used to sponsor something like a night out or a holiday trip.

You are not ready to calculate expenses that you would have to incur if you apply for short term loans– it’s prudent to resort to a strict budget unless you pay off the debt

Author Bio: Sam Payn is an experienced finance blogger who has a number of well-written topics on loans and insurance to his credit.