Many people must have told you various negative information about short-term loans, however most of them are not correct. Much of the rumours against short-term loans are due to certain misunderstanding about how these types of loans work. Many of you may need urgent cash to meet your need but perhaps due to certain misleading information, you are not considering short-term loan. Therefore, in this small write-up we shall try to clear some of the myths that are prevalent in the market.
- Short-terms loans are very expensive to borrow
You need to understand that the reason for taking short-term is for meeting your emergency need. You are supposed to pay back it as early as possible. Yes, interest rate may be higher but why to extend the repaying period for a long time? If you repay back within a week or month, this type of loan is much cheaper. It becomes expensive only if you default your payment for a long time.
- Only if you are under financial problem you should opt for short-term loan
Most of us end up spending the money as much we earn. This is true with people who earn higher salary too. However, emergency situation can come in any one’s life like sudden medical problem or major breakdown in car etc. Swift Money can help you to get short-term loan when your emergency need occurs.
- It will be difficult to clear the loan
Any loan company will approve your loan only after ensuring that you can afford to pay back the loan and hence why worry about that?
- There are plenty of hidden terms and conditions which is revealed later
This is not correct. You can find how much the loan will cost you, if you pay back your loan as per the agreed period. Only if you default then additional penalty will be charged, which is clearly mentioned in the T & C.
- My credit rating is poor so I can’t get loan
The lender will only check whether your earning is sufficient to pay back the loan. He will not be much concerned whether you defaulted earlier or your credit history. As long as you can pay back in timely manner, there will be no hassle.
- It is irresponsible to take out loan
It is totally a myth, as a matter of fact, you will be given the schedule how you must pay back your loan. If you can meet that then it is not at all irresponsible decision to accept short-term loan.