What Exactly Is A Short Term Loan?
With inflation and higher gas prices, life is more challenging today than in past years, leading many people to seek quick cash and ask, “what is a short-term loan?”
The basic definition of a short-term loan is a loan that can be paid back quickly and is used to meet an immediate need, such as paying for a car repair. Short-term loans can be used for urgent expenses like a high utility bill, a sudden repair, or a co-payment to see a doctor.
Life can introduce unexpected expenses that force you to find quick emergency cash. Keep reading to discover how a short-term loan with Tennessee Title Loans, Inc. can be a quick and easy option.
Want To Know What A Short Term Loan Is? Learn Here!
The Definition Of A Short-Term Loan
While the general definition holds, there is a more legal definition of what is a short-term loan. The wording "short-term loan" refers to how quickly these loans can be paid off.
The consensus is these loans take only six months to a year to repay. Those that take longer to repay are called medium-term loans or long-term loans. The longest a short-term loan should take to pay off is 18 months. For instance, a three-year car loan is medium-term, while a mortgage is long-term.
How Loans Fall Into Terms
What is a short-term loan? There are various loans, and they all fall into the type of repayment expected. Many people use credit cards as long-term loan solutions, but, in reality, they fall under short-term loans. That's because credit card users should pay them off within a year rather than carrying the balance for long periods.
To understand what a short-term loan means, you should know it covers a lot of loan products. Other types of loans, such as title, payday, signature installment, and credit lines, fall under short-term loans. Most of those are issued with the expectation they will be repaid quickly.
Who Can Get A Short-Term Loan?
Short-term loans are pretty easy to find out if you qualify than other types because of the smaller amounts issued and the shorter repayment periods. The general criteria for getting a short-term loan are as follows:
- Your most recent paystub or proof of income
- Your driver’s license or state-issued ID
- A blank check from an active checking account in your name
Some traditional banks may be stricter about issuing loans, so they may also do credit checks. Thankfully, Tennessee Title Loans, Inc. welcomes borrowers from all credit backgrounds, and we do not consider your credit history in determining your eligibility for the loan.
Who Offers Short-Term Loans?
Short-term loans are offered by many traditional institutions like banks and credit unions, fintech companies, and private lending companies like Tennesse Title Loans, Inc. when you need help. Tennessee Title Loans, Inc. has three loan products, including payday loans, vehicle title loans, and credit lines. Each loan offer has a different range of maximum amounts allowed and the required items to qualify for a loan.
- Title loans—Our loan amounts range between $300 and $2,500 and require a government picture ID, a clean vehicle title, the vehicle available for inspection, and a validation of income.
- Payday loans—Our loan amounts have a maximum amount of $400, and requirements have a picture ID from the government, a pay stub, and a paystub from an active checking account listed in your name.
- Line of credit loans—Also known as flex loans, these loans come with a maximum amount of $4,000 at Tennessee Title Loans, Inc. Requirements are an ID from the government, a clear vehicle title, your vehicle itself, and proof of income.
How Easy Is The Process?
Applying for short-term loans with Tennessee Title Loans, Inc is straightforward. Here’s how it works:
- Submit the online form on our website.
- A store official will follow up on your request by calling you to explain how that specific loan works and the rest of the process.
- An appointment will be made to complete the process. You can ask a loan representative for details when they call.
- Payday loans and flex loans require that you visit our nearby location. A store official can meet you at another site to complete the paperwork for a title loan.
The entire process can take as little as 30 minutes. If approved, you’ll receive your emergency funds the same day or the following business day.
Fill Out Our Online Form Today!
What is a short-term loan? It's a quick loan to pay for emergencies that you can repay quickly. You can find out whether a short-term loan option with Tennessee Title Loans, Inc. is an option for you by completing the website form. It's simple to fill out and only requires the most basic information.
See if a short-term loan can help you today by filling out the online form on our website today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.