If you’ve ever sat down with a small loan officer at a local bank or credit union you know that most of the time that type of financial institution doesn’t make small pay day loans. If you need less than two or three thousand dollars, and you want to repay it all at once within a short period of time, bank loans are not for you. Naturally, banks have good reasons for their preferred methods of operation, and making short term loans is not profitable because the business costs of making small loans often exceeds any profits a bank could expect to make today.
Because banks are only in business to make a profit, their position is understandable. It stands to reason that credit unions, which operate to serve their members, shouldn’t lose money in the course of their lending business either. So, making short term loans may not be practical for financial institutions, which is too bad because very often it is the ideal thing for borrowers.
Here are a few examples of times when you might need a to get a short term loan – waiting for awards due to court settlements, waiting between jobs and undertaking repair projects when preparing a house for sale. You can see that these circumstances are quite common, and they can pose problems for any of us. These situations are good examples of brief time periods when we have an expectation of money coming our way, but we don’t have access to it immediately. Whenever we don’t have enough money in savings to meet our needs, that’s when we look for alternatives like short term cash advance payday loans.
By now you may be wondering about the alternatives for short term loans and their advantages. It’s common to think first about asking friends and family members whenever the time comes to borrow money. But, while it may have been successful in the past, asking other people often fails these days because those people may not have the money available to lend, plain and simple. These tough economic times affect everybody, no matter what income level they may be enjoying. So, when we assume our friends will lend a hand we may discover that attitude costs us a friendship. And the same is true of family members. That’s why one of our most practical alternatives is borrowing from payday cash loans.
Granted, credit card companies make cash advance loans, too, but they are not the same type of short term loans at all. Credit card advance are installment loans repaid monthly, an obligation that might not be consistent with a family’s budget. Fortunately, payday loan lenders extend cash advance loans until your next payday, meaning as short as seven days in duration. These lenders have programs specifically designed to make short term loans that can help out in exactly the situations described.