MoneyLife

How To Apply For a Short Term Loan

By Grace Kilander
apply for a short term loan

Whether you’re in need of financial help or not, chances are you know someone who is. From student loans to medical debt, the level of personal debt in the United States is staggering. We all know that debt can quickly spiral out of control, but that doesn’t mean you don’t deserve short-term relief. Thankfully, there are companies like MoneyLion who understand this and offer their customers an effective path forward to apply for a short term loan.

Important short term loan benefits to consider

Short term loans offer a few key benefits to cash-strapped consumers. 

Fast cash

Most lenders offer same or next-day funding. So, you won’t have to fill out mountains of paperwork only to sit around for days waiting for a loan officer to approve or deny your application. You can apply in minutes, receive an instant decision and get cash in your hands fast.

If you’re approved and accept the loan terms, you could have cash in your account by the close of business or the next business day. 

Less interest paid –sometimes

Loans with lengthy repayment periods may seem like a better deal, mainly if the monthly payment is low. However, an extended loan term also means that the lender has more time to collect interest from you. With a short term loan, the repayment period won’t span beyond 1 year thus, paying less in interest if you make larger payments. 

However, there are some short-term lenders that can still take advantage of consumers who have less than perfect credit and who may not have considered the cost of their loans. Sometimes, borrowers don’t even have the option of paying fees — they’re either charged them or not paid at all.

One option to avoid exorbitant short-term rates is to know your rights as a consumer. You can explore options such as credit union or a MoneyLion Credit Builder loan up to $1000 with competitive interest rates.

Always ask the lender before signing on the dotted line to confirm you can pay off the loan early without incurring prepayment penalties. 

Easily accessible

If you’re at least 18 years of age with a steady source of income, you shouldn’t have trouble finding a short term loan. Keep in mind that the lower your credit score, the more you’ll pay in interest if the lender uses your credit rating to determine the loan terms. 

Several lenders offer no-credit-check short-term loans. They often have a high interest rate since the lender is assuming more risk. The good news is that they’re unsecured and are far more appealing than secured loans that require collateral. This means you won’t lose your home, car, or other valuable possession if you’re unable to repay the loan. 

Short term loan options 

Have a short term cash flow problem? Consider a short term loan that can help you solve it right now.

Traditional banks

You probably won’t find a short term loan at a traditional bank or credit union. If you happen to stumble upon a financial institution that does offer them, expect to undergo a credit screening and wait for 1 to 3 business days to hear back.

Another drawback to a short term loan with a traditional bank is the application process. You can apply online, but the lender may require you to upload personal information, scan your ID, and provide income documentation instead of syncing with your bank account to pull the information it needs. This can be tedious and time-consuming. 

Also, expect your credit score to weigh heavily in the decision-making process. A low score means an expensive loan, and the cost of interest could outweigh the benefit of the loan. 

Payday loans

Payday loans make it easy to get cash in hand. You can apply with an online payday lender or visit a physical location. However, they aren’t the best option and should only be used as a last resort. 

Payday loans, often referred to as cash advances, are small, short-term high-interest loans available to help people in financial emergencies. Borrowers typically write a postdated check for the amount loaned and the lender holds it until the due date. The borrower then has two weeks to repay the bank in full. Most borrowers are unable to repay the loan when it’s due, which leads to a perpetual cycle of costly extensions and even more debt. 

Think about it – payday loans are marketed as a solution for emergency credit. But, when you read the fine print, they sound more like a short-term loan from a shady character. In fact, an average interest rate from a payday lender can range from 390% to 780% APR! Why not consider alternatives to payday loans before posting your payment or risking your financial future?

Credit Builder Loan

Credit builder loans are another viable short-term loan option. You’ll get the cash you need and help improve your credit rating, which is a win-win for you. 

They’re designed for credit newbies or individuals who want to establish their credit score or give it a boost. So, even if banks have said no to a traditional loan, you may get a yes with a credit builder loan product. 

While most credit builder loans require you to pay the balance in full before accessing the funds, MoneyLion does the exact opposite. We understand how important it is to get the cash you need when you need it and take an unconventional approach to lending with our Credit Builder Loans.

If you sign up for a MoneyLion Credit Loan Plus membership, you can get a loan of up to $1000. Plus, you’ll have access to a portion of the loan proceeds (maybe even all of it, depending on your finances) right away. 

The remainder of the funds are held in an interest-bearing Credit Reserve Account and released when the final payment is made. In the meantime, you can watch your credit score grow as you make timely payments each month. Even better, MoneyLion reports account activity to all 3 credit bureaus – Experian, Equifax, and TransUnion – so you can receive the benefit of a higher credit rating across the board. 

There is a $19.99 fee each month for the Credit Builder Plus membership. But it’s well worth the investment considering the interest you’ll save on future debt products with a higher credit score. The membership also gives you optional access (at no additional cost)  to zero-fee banking, managed investing, and 0% APR Instacash advances. 

Instacash

Imagine having access to an interest-free loan at the tap of a fingertip. You’ll never have to worry about showing up to a holiday party giftless or scrambling to pay your cellphone bill. Get our fee-free, 0% APR loan of up to $1000 by setting up a direct deposit and signing up for Instacash.

It only takes a few minutes to set up your profile, and you’ll know how much you can advance right away. The best part is the moment you request an advance in the app funds are sent to directly your bank account. 

Worried you won’t qualify because your credit score is too low? Don’t be. There are no hard credit checks, and MoneyLion won’t report Instacash activity to the credit bureaus. 

Qualify for a short term loan today! 

Our Credit Builder Loan or Instacash advance can help you get a short term loan without sacrificing your future. If you have bad credit, we have options that may be the only thing standing between your family and financial ruin.

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