There are two types of loans available and you can have the option to buy either short term loan or long term loan. In Long term loan you can borrow a large amount of money for automotive financing and mortgages whereas in short term loans you can buy only small amounts for paying any emergency bills and meeting your travel expenses etc.
WageDayAdvance offers short term loans for your everyday needs and you can apply for the loan online. You can speak to the customer care executive for any details about the online application. You can find WageDayAdvance contact number in Google and speak to the highly skilled executives of the customer care team.
The function of both these loan types is similar but both the long term and short term loan have different interest rates. Continue reading this article to know more about the differences between short term loans and long term loans and its features.
Many people have the common question about the duration of the short-term loan within which it is to be repaid. If the loan amount that is to be repaid within the period of one year then this loan is called short term loan. The duration of repayment in short term loan is available in three, six, nine and twelve months. In short term loans, only small amount of money is borrowed it is not required to have a high collateral value.
If you are borrowing a loan with the large percentage of values that must be repaid in shorter terms it is considered as an unsecured loan. The collateral of such loan type must be lesser in value that the offering value. Most commonly used collateral item are vehicles in short term loan type.
Interest rate of the short term loan is fixed based on various factors such as the amount of money you borrow, duration of loan and collateral that is produced as security for the loan amount. You must understand that the interest amount of the short term loan that lasts for six months or nine months are lower than the interest amount you paid for the long term loans like four years or ten years. It is best option to get short term loan with higher interest rate for shorter period.
For your short term loan needs, you can pick the same source of lenders that you are preferred for long-term loans. Banks, financial institutions and online lenders are preferred for both short term and long term loans. You must spend some time to find the best lender from various lenders before selecting one. You can check on the internet and find the pros and cons of different lenders and also clarify the repayment option before buying the loan.
In short term payments, you must repay your loan amount within a year, and you must be aware that is highly vital to pay your loan payments on time without missing. If you failed to make the payment, it will affect your credit history and you will get negative impact. To avoid any future problems in getting loan, you should settle your loan amount quickly.