Short or installment loans: which one is best for you?

An economic need has arisen and you have decided to address it by requesting an online credit, but then the question arises about what interests you the most: a short-term loan or an installment loans. At Slick cash loan, we explain what exactly, each one consists of and we study both the advantages and disadvantages of a short and installment loans so that you can decide judiciously which of the two products is more interesting for you.

Short and installment loans: how are they different?

A short-term loan is a type of credit that must be repaid within a maximum period of one year. For its part, an installment loans is one that has a maturity of more than one year that is, it can be repaid in installments whose payment period exceeds twelve months.

Advantages of a short-term loan

* A short-term loan allows us to obtain money immediately. In addition, as of today, we can request our short-term credit through the Internet and get a response quickly, which means that we receive the money in our bank account in just a few minutes.

* Does not require paperwork. In general, we just need to have on hand our ID, an account number in which to receive the deposit, and our contact information. We will not have to break our heads looking for papers and documentation, nor will we need to visit any office to deliver them and formalize our short-term loan, which simplifies - and greatly simplifies - the application process. Micro credits are also included in this category, which must be repaid within a maximum period of 30 days.

* The interest rates in the short term are lower than long rates.

Disadvantages of a short-term loan

* The loan amount is usually not very high. In general, we speak of credits that do not exceed 800 or 1,000 euros.

* They make it compulsory to collect the borrowed money in a short period, which is not plausible for all clients who consider applying for a loan to cover a need.

* They cannot be postponed. They must be returned, yes or yes, within the stipulated period.

Advantages of an installment loans

* By offering the option of returning it over a long period, it allows you to choose the number of installments with which we will feel more comfortable paying.

* Installment loans are better adapted to the creditworthiness of each user.

* In many cases, installment loans contracts can be modified or renegotiated.

Disadvantages of an installment loans

* The interest on an installment loans is usually higher than that on a short-term loan.

* Installment loans usually require payrolls, guarantees or documents that prove the creditworthiness of the client.

* They mostly exclude users registered with AENEAS.

Another issue to consider is the entity from which the loan is requested. Banks usually have longer processes to process the loan. However, today there is the possibility of ordering it online. Online loan providers offer different conditions than traditional banks, without having to provide documentation such as payroll or guarantees that justify the creditworthiness of the client. In addition, some even accept registered AENEAS users. Read more here about unsecured loans.

Please note that the content of this post does not constitute financial advice. We recommend that you consult your personal financial advisor before applying any advice or recommendation that appears in this post.