Let’s face it. Sometimes you need a little extra cash before the next paycheck. Car repairs, medical bills, or an unexpected home repair can all put you in a bind. If your boss isn’t willing to advance you a few hundred dollars (and really, how many are?), there are different ways to get an advance on your paycheck. Examples of common short-term loans are payday loans and installment loans.
Payday loans are short-term loans you get using your next paycheck as security. In other words, you promise to pay the loan back in full when you get your next paycheck. This creates a cycle of need, because your next paycheck will go to pay off the loan, leaving you with nothing for the next pay period. You will pay fees on top of that, so you get less of your paycheck to keep. The business does need to charge a fee, because that is how they stay in business, but it does make it harder for the borrower to stay on top of their bills.
Installment loans are also short-term loans you get using your next paycheck as security, but there is a difference. Instead of paying the lump sum back with your next paycheck, you make a smaller payment over a period of time. With this loan, you get to keep more of your next paycheck, but you do make a promise to pay back the loan a little at a time. These loans can be approved quickly using an online loan service such as Blue Trust Loans. You will have to qualify for the loan using criteria such as the length of time you have had your bank account, your age, and minimum take home pay.
Read the fine print
In any transaction involving money, you should always read the fine print. Know exactly what the terms are, and when you will be required to make payment. Online reviews are a good place to start if you are not sure about a lending company. Simply search the name of the company and type the word ‘reviews’ after the name. A short-term loan may be the only option should a problem arise, so make sure you have all the information you need to make the best decision for you.