When Is The Short Term Loan Better Than Long One?

20 Mar 2013

Loans are basically of two types: short term loans and long term loans. Both the loans will not fit all of your purpose all the time. Before you approach the lender to apply the loan, you should take few factors into considerations.

Long term loans are generally conventional loans, when you apply for these loans, you should be able to showcase your good credit score, pledge security and have good patience to get the approval of the loan.

Short term loans on the other hand are issued instantly and approved by the lender without asking for credit score and acceptable security. These loans are perfect choice for the people who are suffering with bad credit and need immediate cash to meet their emergency needs.

If you sure that you need money to bridge the gap between shortfall of money and next pay check, you can apply for these quick loans. When you seek instant money from the lender without showing your credit score and pledging security, the lender generally charges little high interest rate.

You pay interest rate for the amount borrowed from the lender throughout the repayment tenure. If your needs are short term, fetching a loan for loan for long term will make you pay additional interest throughout the repayment tenure which is an extra burden again. Some lenders charge you penalties for the early payment as well so, it is always better to choose the type of loan base on needs you have.

If you are looking for the instant cash for the long term, you can apply for installment loans which have little long repayment tenure but, you should be ready to pay the interest rate throughout the repayment tenure.

Whether you are applying for short period loan or installment loan, the lender will decide the amount of loan that can be sanctioned through instant loan based on your repayment capacity.
You can get the loan approved on the same day if everything specified in the loan application meets the requirements of the lender.


Short term loans are better option for you to choose if you are looking for instant cash assistance in spite of your bad credit to bridge the gap between shortfall of money and your next pay check.

Do not pay any lender or broker an upfront fee to process your loan application.

The operator of this website is not a lender and does not make credit decisions. The information you provide will be used in securing you a payday loan with one of our carefully selected panel of leading Payday Loan Lenders in Australia. The personal, financial and employment information that we collect is stored electronically during the duration of the application and is removed from our system upon acceptance from the lender.

Please note that payday loans are meant to be used for short term financial emergencies and are not designed to provide long term solutions

We expect you to repay your loan on the date agreed, so if you do not think you are in a position to make your repayment, please do not apply with us in the first place. It is not worth risking your credit rating for such a small amount.