There is no need to beat around the bush, short terms loans have often received a bad rep. Did you know that most of the information about these loans is not true? Much of the poor view has to do with inaccurate or completely false information. When you're in need of cash, a short-term loan doesn't have to be a bad thing.
A common concern many people have is the idea that you can't do an early pay-off with a short-term loan. Some people are under the impression that the loan servicing company either doesn't allow this option or they will charge an exuberant number of fees to clients who choose this option. While some loan agreements may come with certain restrictions or penalties for an early pay-off, the idea that this is an across the board concern is simply untrue.
There are many agencies that charge nothing at all, or a very small fee, for paying off early. Remember, the loan company's goal is to have their money returned to them, so why would they block someone from doing so?
Preset Payment Terms
If you're shying away from a short-term loan because you feel you won't have any say about how the loan is paid back, you can toss this idea out. What is considered short is solely up to the discretion of the lender and the customer.
For instance, if you're worried that you can't repay the loan back in four weeks, you may be able to work out terms that set up repayment of the loan over an eight-week period. The point is that these lenders aren't going to set you up with a term that you can't meet, as this will simply be a risk on their part.
One of the most common beliefs about short-term loans is the idea that they charge unfair amounts of interest. However, this idea can quickly be dispelled. First, these lenders have to operate under federal and state regulations just like other financial institutions and in most states, there is a maximum interest that can be charged for a loan.
Second, your credit plays a big role. Have a history of paying your bills on time and no derogatory marks, then you won't have to worry about this as you will be rewarded for your efforts in the form of an acceptable interest rate.
Don't let a misconception about short-term loans keep you from the money you need from a company like Wilmington Jewelry & Loan. Research lenders in your area to find the best one for your needs and get the cash you need for your situation, whatever it is.Share