Back to Top

Everything you should know about same day personal usecured loans in LA, US

Short Term Loans

features of short term loansShort term loans can help you with the unexpected money issues and are basically designed with temporarily money problems. So should you consider short term loans to, let’s say, get your vehicle smogged, leakage fixed or a purchase made when you are low on cash? Definitely, yes. But this is where you should stay sharp. In this article we’ll focus on the basics of borrowing in projection on short-term loans.


The interest rates range in short-term loans is mostly much higher than that in the long-term. So you should always keep in mind that the price to pay would be very different from that you’ve might have seen in installment or mortgage loan offers. However, the short-term loan is cheaper in the long-run, given the fact that it is used not frequently (that’s why these types of loans are typically capped by 30 days limit).


The common features of short term loans are:

  • Diversity in interest rates. While the percentage of long-term loan is relatively stable, in short-term offers it widely varies, sometimes reaching a really high high level. Inability to repay the high interest may result into further problems – negative impact on credit score and even criminal record.
  • If a person relies on short-term loans and faces the situation when he/she is not able to complete a repayment on time, certain creditors may refuse to provide a full-fledged loan extension plan. Even though the lenders are legally forced to provide the ‘minimum required’ loan extension options, that may not be something a person is actually looking for.
  • The maximum loan amount caps. While in some states short term loans are even prohibited, basically you cannot count on the amount exceeding $1,500. In such states as California, the maximum amount you can count on within a payday loan for example is $300. In some states, the maximum amount is calculated basing on your monthly income, so you might not get the desired money if you don’t have a stable source of income (although this cases are quite rare).


Short term loans imply a variety of advantages too. Let’s focus on the main ones:

  • minimum package of documents required to borrow money. No need in bulky paperwork, you can get your loan money credited to your account the next business day after you submit a short form.
  • a significantly simplified procedure for the consideration of the application you file. Normally, the process of consideration is a few minutes deal. If you are approved, you can get your money deposited to your credit card and complete the repayment in the same mode.
  • the approval rates are setting one record after another. Therefore, the chances for your application to be approved are really high (way over 60%). In this case your credit history is not always subjected to a check. In case of bad credit history a payday loan could be the only instrument a person has the access to.


In short term loans even the basic factors (such as permanent residence at one address or property ownership) greatly increase the chances of a positive decision on your loan, that’s why you may almost always consider this opportunity. The same logic applies when analyzing the customer’s credit history. Not every company do credit checks, but those who do reward the potential borrowers with lower rates if credit score is OK.


All and all the penalties for short-term loans are typically less severe as with the repayment of the mortgage loans. And the payment delay for several days might be considered to be a technical delay with little or even no penalties if you notify the lender. The most radical measures, an appeal to the court, is used by the bankers only in case of 3+ months delays as practice shows.