Short-Term Loans

Direct Private Capital Group, Inc.

Short-term loans are paid back within a year or two and are meant to be used for unexpected financial emergencies that you can’t afford to pay out of pocket.

Short-term loans are short-term because they should be repaid within the period specified in the contract. The borrower can choose from various repayment options, including monthly, biweekly, or weekly payments. The lender may also allow you to pay off your loan early without penalties.

When you apply for a short-term loan, you’ll have to provide basic personal information such as your name, address, and Social Security number. You may also need proof of income or an active checking account. If so, the lender will likely ask you to provide bank statements or other documentation that demonstrates that you have enough money in your account to cover the loan payment each month.

If you default on your loan payments, the lender may attempt collection efforts through phone calls and letters. However, if these efforts fail, they may turn over collection efforts to an outside agency that charges additional fees for its services (collectors typically charge 25 percent of what they collect).