If you’re considering taking a short-term personal loan, you should note that short term loans have pros and cons. Short-term loans can offer a quick exit from a tight financial situation, often incurring sizeable interest due to the duration of the loan tenure. 

You can access short-term online loans on reliable loan apps online. These loans can be approved in under 24 hours and provide a convenient way to access quick loans safely. They usually require no collateral or security to access. This article explores some of the pros and cons of short-term loans. 

What are Short-term Loans? 

As the name implies, short-term loans are credit facilities granted by a lender to a borrower to be repaid in a short time. The borrower usually must repay the loan capital with interest within a year. 

There are short term payday loans for private individuals and short-term business loans. There are also different short-term loans, like installment and payday loans. 

Pros of Short Term Loans

People are seeking short-term loans for their convenience and low-risk factor. There are several reasons short-term loans appeal to a lot of intending borrowers. Here are some pros of short-term loans:

  • Don’t Require a Perfect Credit Score

Short-term loan companies often approve loans to individuals with less-than-perfect credit history. Due to the smaller loan size and higher interest rates, lenders are comfortable granting these loans as these factors significantly offset the risks of lending to people with bad credit. 

Most lenders from credit bureaus will ignore your credit history and grant you a loan if there is proof of regular income. 

  • Fast Loans

Short-term personal loans are usually approved with funds disbursed at a fast rate. This is one of the biggest advantages of applying for an online short-term loan. Depending on the loan company involved, you will know your loan approval status in less than an hour. 

You might receive approval for some short-term online loans in a few minutes. This makes them a reliable option when you have financial emergencies. 

  • Easy to Access

Applying for a short-term loan can be pretty easy. The lender would only need your personal information and some proof of your financial status. You’d also be required to state your employment status and your monthly earnings. The lender might also require your credit history; however, this may not affect your loan approval. Lastly, the lender might require additional information like your physical address and evidence of your active checking account. The lender will contact you for any other information they require. 

  • Strong State Regulations

Each state often has regulations guiding short-term loans. Reputable short-term loan companies are required to adhere strictly to state regulations.

If the lender is registered with the Financial Conduct Authority (FCA), they will be bound by law to check that you can pay the loan. The loan company will also fully disclose all charges and rates on your loans. Some state laws require that lenders provide an extension for borrowers experiencing issues that delay repayment. 

  • Several Options Available

When it comes to short-term personal loans, intending borrowers have several options to choose from. Firstly, loans are not only accessible at our traditional brick-and-mortar banks but have become accessible online. Several financial services exist online that grant short-term loans safely and quickly. People with higher credit scores, on the other hand, typically receive offers with lower interest rates and more flexible terms.

There are also several options for short-term loans to choose from. Payday loans, title loans and pawn loans are popular short-term loan options for borrowers. These different kinds of loans come with different requirements. Also, customers with credit difficulties should seek credit counselling. However, they are all easy to access. 

Accessing Short Term Loans Online 

One of the most popular types of short-term loans is payday loans. Mississippi residents can apply and get a payday loan in less than 24 hours with Loan Service MS. This short-term loan company offers up to $5,000 short-term loans to be paid back when you receive your payslip. 

Requesting a typical payday loan on the site requires basic details like your name and contact address. All you need is to prove a regular monthly income of at least $1,000. It takes just a few minutes to fill out the application online, and if you do it early in the day, you might receive a credit on the same day. 

Loan Service MS does not require you to state what you need the money for. Thus, you are at liberty to use the funds in whatever way you like as long as you pay them back on the appointed date. 

Cons of Short Term Loans

Even though short-term loans are quick and easy, they also have some downsides. Some unsecured loans are referred to as payday loans because the loan’s duration usually corresponds to the borrower’s payday schedule.

  • High Interest Rates 

Lenders offset their risks of non-repayment by attaching high interest rates to your loan. Thus, the interest rates associated with short-term loans are higher than other kinds of loans. Ensure to find out your lender’s interest rate and Total Amount Repayable (TAR) figure. 

  • Penalties

Some short-term loan providers charge borrowers for late payments. Read through the terms and conditions of the lender you intend to use to see the hidden charges your loan might incur. 

However, the FCA regulates the total interest payable by the borrower. Thus, short-term loans now have capped interests.

  • Supports Debt Cycle

Because of the ease of access and flexibility of short-term loans, you might find yourself constantly taking out loans for emergencies rather than saving for it. As stated, these usually have high interest rates and strain your finances to repay. Unfortunately, debt damages your credit score in the process when you have to deal with other issues like late payments. Therefore, only take out short-term loans when necessary.


Sometimes, life happens, and we find ourselves in need of quick loans. Short term loans are quick and easy to get, and millions of people take out different types of short term loans yearly. People with bad credit can access these installment loans as well. 

However, there are some downsides for getting loan agreement to short-term loans. Due to their high-risk factors, they usually have higher interest rates. To ensure you don’t run into unexpected charges, use a reputable lender like Loan service MS or MoneyWise