How Does It Work To Get A Short-Term Loan?

Utah Title Loans, Inc. has several loan options that customers can choose from. After all, every individual has a unique set of circumstances that may require a different type of short-term loan that fits their needs. For this reason, it is important to understand the different types of loans available. 

Once there is an understanding of the various loan types, analyzing one's specific circumstances will allow them to choose the best option for them. Below is a quick explanation of what a short-term loan is, how it works, and the different types of short-term loans there are. 

What Is A Short-Term Loan?

This type of loan has a lot to do with how they work. This is a loan that lasts for only a short span of time before a loan agreement is fulfilled. This means that it can be anywhere from a couple of weeks to a couple of years depending on what loan you choose. 

For instance, some of the different short-term loan options available to customers have varying loan durations. 

• Payday loans have an average loan duration of approximately two weeks.
• Title loans have an average loan duration of about one month.
• Installment loans have an average loan duration of about 15 months.

How Does It Work?

Getting a short-term loan is often easier to get when compared to getting a long-term loan. Why is that? This has a lot to do with how they work. For one, it requires less from applicants in the way of documentation. It also requires less in the way of credit check requirements.

The main reason that the loan requires less documentation to obtain is that the amount a borrower receives is typically a small sum of money. Due to a smaller loan amount, there is less importance placed on an individual's credit score or the need to do a deep dive into one's credit history.

How small of a loan are we talking about? A short-term loan amount can be anywhere from three hundred to fifteen thousand dollars.

What Are Your Circumstances? 

With the knowledge of what a short-term loan is, the types available, and how they work, it is time to look at your specific circumstances. 

Evaluate The Funds Your Situation Calls For

Does your situation call for only a couple of hundred dollars, a thousand dollars, or several thousand dollars? Does the loan you have in mind have the ability to meet your financial demands? Do you have everything you need to apply for that specific loan?

When Would You Otherwise Have The Funds?

Take a moment to do a financial outlook and determine how soon you would be able to raise the funds yourself if the situation were not pressing.

This will give you a better idea of what type of loan duration would be ideal for your situation. Think about whether you will have the funds by your next paycheck, within a month's time, or several months from now. 

When doing a financial outlook, it would be wise to lowball your income. This can help protect you from making a decision that does not take into account the potential for lost pay due to unforeseen sick days or fewer work hours if your hours tend to fluctuate from week to week.

Get The Loan That Fits Your Needs

Utah Title Loans, Inc. can provide customers with loans capable of meeting various monetary needs. The amounts are as follows:

• $100 to $500 when you apply for a payday loan.
• Up to $1,500 when you choose signature installment loans.
• $300 to $15,000 with a title loan.

How The Loan Request Works

Customers need only bring in the required items for the loan of their choosing. Below is a list of each loan option and what items are required to put in a request for each.

• Payday Loan- Valid state-issued identification, the most recent paystub you have available, and a blank check.
• Installment Loan- Valid state-issued identification, a checking account statement, your most recent paystub
• Title Loan- Valid state-issued identification, a vehicle title showing it is lien-free, and the vehicle itself. 

Submitting an application is as easy as bringing your documents to one of our local stores to have them verified and evaluated. A loan amount will be decided before a representative goes over the final paperwork for you to complete.

Get Started Now

A Utah Title Loans, Inc. representative can deepen your understanding of how the various short-term loan options work. Still on the fence and unsure of which loan is best for you? Then get the information you need without delay.

We have come across scenarios of all kinds and can help direct you to a loan fitting for you. Reach out today to get any remaining questions answered. Submit an online form now to have a representative contact you at your earliest convenience. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.