Actually, most short term loans available in the market are priced ridiculously (with lots of hidden charges) such that you end up thinking the companies marketing these loans don’t want to extend them to their clients. If you’re approaching your personal contacts, you still have to consider if you have good credit standing from among these people included in your network who may probably give you short term loans. The ability to ask for loan/s from anyone in your network is a hallmark of creditworthiness – there’s nothing personal about this. People just want to make sure they get paid as promised. Sources of short term loans can dwindle fast as more people avail of them. But there are approaches to finding a reasonable short term loan.
First step is to break down into smaller amounts the total amount you need to borrow. For example, if you need $5000, you can divide it into 10, thus giving you $500 as an amount you can tell your prospective lenders. Smaller amounts tend to give lenders more space to consider, and a better assurance that they will be paid as you promised them. Keep records, and be efficient in keeping track of your payments so you’ll be able to keep your good credit.
Second, consider pawning some objects in your house which have some value but you don’t exactly need or want. If you have items in your house that come in doubles, and are valuable, pawn them now, and you’ll be able to get some loan (but not necessarily that reasonable in terms of interest to pay). A few examples of these are wristwatches, gold necklaces, other jewelry items, and even unused cell phones (which pawnshops may be willing to take).
Third, look for creditors from among your family, friends, and relatives. This is easier said than done, especially when you don’t have good credit standing among any of them (or even with a few of them who may say a bad thing or two about your credit standing). To help persuade them, state that you’re willing to sign a promissory note, and that you’d be willing to have the interest deducted in advance from the principal. One or two among your kin plus friends may find this packaging more advantageous, so they may decide to lend you some cash.
Fourth, be ready and willing to issue post-dated checks (if in case you have a checking account) to your lender. This will make the person more willing lend you some amount that you need now.
Fifth, approach some people whom you may have known and met sometime ago, but have not been in touch with for some time now (for one reason or another). This takes more guts, but you’ve got nothing to lose. Ask for financial assistance from them, personally, by mail, or by email. State clearly your reasons why (which by now, must be reasonable, authentic, and honest). Some of them will surely be willing to extend you some amount of money without interest – some will perhaps give you some amounts without the need of repayment. Express your gratefulness if such happens.
Sixth, if you’re employed, ask your employer for a short term loan directly. This may come in the form of advance salary, if that works in your company. State your reason, and have a meeting with a responsible officer of your company.
Seventh, get a referral from someone you know who has made a short term loan. Ask around on this, informally. Ask for more details, including the interest. Check the names, and their reputation (if possible). Then if you’ve gathered more helpful details, decide if you would like to get a loan. Keep away from borrowing from companies that you have not heard about before.
One major tip, though, is to keep away from loan sharks, if you can help yourself. You’ll be drowned soon just by paying the interest plus charges (if you’re late in payment). And it’ll be a difficult sinking hole to come out of, if ever you get yourself entangled in such a situation.
In the end, make sure you pay your loans as promised and agreed upon with the creditor. This will go a long way the next time you need help along this line again.