Short-Term Loans

Find a secured or unsecured personal loan you need with the best rates and terms available for your credit situation.
Learn more about why these loans are lower risk for a consumer.
See how loans can be made without having to go through a financial institution.
A secured or conventional loan is usually riskier to have, but comes with a lower interest rate.
Learn why these types of loans should only be used in the event of an emergency.

Short-Term Unsecured Loan

Short-term loans, also better known as payday loans or payday advances, are a type of small, unsecured personal loan. These loans differ from the more traditional unsecured loan options in that they are tied to the borrower's next payday - the basic terms have repayment due on the date that you are paid by your job.

When applying for a short-term loan, you can do so either online or by walking into a brick and mortar location in your town.

Short-term loans can be obtained online. When filling out an online application, you give the lender your personal information, as well as your banking information. The loan amount is funded via direct deposit. As the terms of the loan are tied to your pay schedule, on your next pay date the loan amount (as well the interest and any fees) are automatically withdrawn from your bank account.

Obtaining a short-term loan in person means visiting a lending store and writing a post-dated check for the amount of the cash loan plus interest and any fees the store might charge. When the loan comes due, (which is on your payday), you can either go back to the lending store to pay back the loan and fees in person or you can tell the store to deposit the check.

There are a number of reasons why people get short-term loans. Some of the most common reasons include that fact that the money is immediately available in the event of an emergency, and that the borrower does not have the assets available as collateral to qualify for a secured loan from a bank or the credit history needed for an unsecured loan through a bank or peer-to-peer lender. However, there are many reasons why short-term loans should be used as an absolute last resort. Here's what you need to know if you're considering getting this kind of unsecured personal loan.

Top 10 Things You Need To Know About Short-Term Loans

  1. Short-term or payday loans aren't available in every state (currently, they are only available in 37 states).
  2. In certain states, certain types of short-term payday loans are illegal (Arkansas, Connecticut, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia have laws against payday loans). However, there are alternative short-term installment loans that are legal. It's important to know the difference between which kinds of short-term loans are allowed in your state. The good news is that free support is available to help you make the best decision for your location and financial situation. AmOne has experienced financial search specialists available toll-free at 1-800-781-5187.
  3. Some states have laws that limit the number of short-term or payday loans a borrower can take.
  4. While some states allow for a renewal on the loan if you're unable to pay it back when it comes due, not every state permits this. In other states, an extended payment plan is required by law.
  5. The interest rate on short-term loans is very high. According to the Consumer Finance Protection Bureau (CFPB), a government agency, borrowers can see an annual percentage rate (APR) of 400 percent or higher.
  6. Not all online lenders are legitimate. In fact, the Federal Trade Commission (FTC) has recently uncovered several online payday lenders who have violated federal laws. There are a large number of fraudulent websites. These websites are created in order to get your personal information and to use your details to gain access to your finances and more.
  7. If you're unable to pay back the loan by the due date, you can find yourself owing not just the loan amount, interest, and fees, but also a fee from your bank for insufficient funds as well as a finance charge from the lender for failure to pay.
  8. A missed payment or repeated use of short-term loans might put you in a position of constantly owing money or being in debt due to the loan amount plus interest and fees.
  9. For active duty members of the military, there are special protections in place for you regarding payday loans under the Military Lending Act.
  10. Each branch of the military has an emergency relief fund in place to help in times of need. The Army Emergency Relief, the Navy-Marine Corps Relief Society, the Air Force Aid Society, and Coast Guard Mutual Assistance have financial assistance available for service members. In addition, military credit unions offer short-term loans, and many are able to provide emergency loans to members.

Life happens. There are times when an emergency arises and you're in immediate need of money you don't have. While short-term personal loans may seem like an easy option, the finance charges and high interest rate mean you might find yourself at risk of falling into a cycle of debt.

Finding The Right Personal Loan Solution for You

If you're in need of money for an unexpected event or emergency, make sure that you've considered all of your options and have found the best financial solution available before proceeding. If you're unsure of what the best solution is for you, AmOne can help. For the last 16 years, AmOne has worked with lenders across the United States. We've used this experience along with the reviews and feedback from our clients to help determine which of our partners offer the ideal solutions and the simplest processes for each borrower. We work with you to help ensure that you're matched with the highly rated solutions available for your situation in your market area.

We provide, at no cost, expert live support from trained professionals — our financial search specialists — who are available via phone to answer any questions you may have along the way. Simply submit your information on our personal loan form to find the right solution for you. You can also call us toll free at 1-800-781-5187, Monday through Friday from 9:00 AM to 9:00 PM and on Saturday from 9:00 AM to 5:00 PM Eastern time.


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