Life is predictable and we cannot certainly
figure what will be coming next? Often, we all need a little amount of money at
the end of the month to pay for our uninvited expenses. This could be anything
such as sudden break down of the car’s transmission, the need of HVAC system,
sudden roof leakage that needs fixing, multiple birthdays or festivals in just
a span of few weeks.
These sudden events can occur with any of us and if you have some savings in your account, then you could survive these small nagging expenses which you certainly cannot avoid. But what if you don’t have enough saving with you, you need to find a way to pay up for it. So, what are your options? This is exactly what we will be discussing today in this blog. So let’s find out.
Short term borrowing options available
- From family and friends
The first thing that would pop into your mind when looking for some financial help is why not asks from my friends or families. And they would help you without any doubt or any questions in their mind. As you are borrowing from your closed ones, you won’t have to worry about any interest, penalties or any other charge that would come when applying on a financial institute. However, it would be wise and better to make sure that you repay their loan on time so that there is no gap between your relationships with them.
- Credit Card
Well, it’s okay if you don’t want to sour the relationship that you have with your closed ones. There are other viable options available too. So, if you don’t want to stand in the long queue on any banks or credit unions, then the best option for you to go for credit cards. Undoubtedly, it is a great option for short term borrowing but you have to make sure that you pay the debt back on time or else a heavy interest will be standing outside your door. Also, try not to exhaust your credit card limit as it can have a negative impact on your credit report and getting a loan might get really difficult for you in the future.
- Yearly Loans
If you have a home renovation project where you will be upgrading some part of your home, then it could cost you more than you are thinking. There will be a good chance that you may require a good amount of money during your home renovation. So, it would be better to apply for a larger amount of loan so that your project with completed without any work left unfinished. For this, you can apply for 12- month loans where you get an entire year to pay back the loan and the monthly instalment will be not that high so you won’t have to make any greater change in your monthly budget.
- Peer to peer lending
This lending concept is quite similar to that of lending from a friend but the only difference here is that you will have to complete the payment along with the interest and on time or else you will have to pay hefty interest. Basically, in peer to peer lending, the lender could be an individual, agency or a group who provide loans to people who are looking for it. These lenders basically offer loans to people with a bad credit score who are not able to qualify for a loan at the high street banks or credit unions.
- Online Lenders
If you are not able to secure a loan from banks or any other financial institution, then you can Google for the online lenders. Yes, the lending business has spread its roots to the realm of the internet and you will find various lenders who are willing to provide you with short term loans at bad credit score or even if you don’t have a guarantor. There is one great advantage of going for online lenders i.e. you don’t have to stand in the long crowd to apply. You can easily submit the application at your home with the help of a few clicks on your computer.
Wrapping up, these were some of the best short term lending options lending options available. You can go with any one of them that you find more suitable and make sure that you do your homework from your side as well before contacting any lender.