Short loans are really useful to cover small holes or deal with unforeseen events. It’s a very popular loan that can be contracted easily and quickly so that you can obtain the money you need in just 24 hours or even less, it doesn’t matter if it’s only about a 200 dollars loan.
After you read this article, you will know:
- What is a short loan;
- Advantages and disadvantages of a short loan;
- How to get a 200 dollars loan;
What Is a Short Loan?
Short loans are a kind of personal loans of small amounts that can be disposed of quickly and whose repayment is established in the short term. This type of financing is becoming more and more frequent due to its speed, security, and simplicity.
You just have to be clear about how much money you need and how long you want to return it.
In a nutshell, a short loan is a type of personal loan designed for short-term repayments of not very large amounts that you can have quickly.
Short credit usually settles for loans of less than $5,000. There are even short loans or payday loans of $100 or $200. This money must be returned to the lender usually in a single term, which rarely goes beyond a few months or a year.
On the other hand, being able to access this type of economic resource is not usually difficult in terms of time and procedures.
How short loans work
With this type of credit, they operate under microfinance. The idea is that users don’t fall into continuous long-term debt. Thus, they have very particular characteristics:
- The amount of the mini-credits is usually less than $5,000, although it may vary depending on the financial institution.
- Due to the small amount borrowed in these loans, the term to return the money to the entity is usually established in a maximum of months or a year.
- In addition to the initial amount of money, an extra interest must be paid to the entity for said loan.
- Sometimes, its amortization is carried out through installments whose amount will be determined based on the amount of money borrowed and the repayment term.
You can easily get short loans or payday loans online, credits that usually cover the economic needs of those people who need money urgently since they are small credits that allow users to obtain money instantly.
With fast short loans, you will receive the money in your bank account in just 15 minutes. No waiting or paperwork. It will only be necessary to complete an online application provided by the financial institution.
Access to this type of credit stands out for its simplicity and for having few requirements. Besides, it’s not necessary to indicate the purpose of the request, since the money can be used for any purpose like:
Facing an unforeseen payment or a mechanical breakdown.
- Buy gifts.
- Start a project.
- Among others.
Generally, to apply for a short loan of $200, it is usually only necessary:
- Be at least 21 years old.
- Confirm your identity with your ID, for example.
- Have an account number where the entity will enter the requested money.
Advantages Of Short Loans
- Easy to get: This is their main advantage because they can be requested comfortably from home, just by filling out a form that the company usually posts online on its website.
- Few requirements: You don’t need as many requirements as to when you ask for a common personal loan.
- Speed of response: The response from the financial institution is made at the very moment. That is why you may have the money in your bank account in less than an hour.
- Indefinite purpose: You should not always say the purpose of your loan. It may lower your possibility of getting approved. However, if it’s an urgent situation, like any economic unforeseen event, you can mention it to leverage your loan process.
- Possibility of requesting financing again: Many entities carry out loyalty programs offering better conditions to former customers.
- You don’t need a good credit history: In fact, you may not need credit at all, because since they are small amounts of money, lenders do not really take as much risk.
Disadvantages Of Short Loans
High cost: this is the main problem with short loans. The interests of these loans are usually much higher than those of a traditional loan.
No payment policies: In case of non-payment, your name will be entered on a list of defaulters with practically no notice.
Appearing in a delinquency file will make it difficult to obtain other credits, such as loans and mortgages. It’s important that before requesting a short loan you make sure that you have the financial capacity to repay it.
Why Would You Need a 200 Dollar Loan?
The most common reasons why a person asks for a 200 dollars loan is usually because they need to get out of an emergency, they need to pay off a debt quickly, or they need to buy something urgently.
Likewise, the reasons can be many, depending on your situation.
The financial entities that are in charge of this type of loan business and operate under the ideas of microfinance facilitate the money in such a way that it’s about preventing the individuals who receive them from falling into recurring and lasting debts over time.
In other words, it’s about advancing amounts of money that are small enough so that they can be easily repaid in short periods.
You can say that its purpose is fulfilled, which is to provide individuals with urgent loans, especially to be able to face unexpected expenses. However, the abuse of this type of financing mechanism is not usually recommended in the long term, since they usually have proportionally higher interest rates than other loan modalities of greater duration and amount.
In other words, they can relieve situations of unforeseen economic urgency but they do so at a high cost.
The Bottom Line
As you can see, it is really not difficult to get a small loan for $200. It’s very easy and fast to get it online, just remember not to abuse them since in the end, with all those interest rates, they end up being expensive.
We recommend that you limit yourself to requesting them when you really have an emergency or to cover some important expense.
It’s becoming common for these financial companies to limit the number of short loans per person to avoid repeated requests per year since it has been observed that there is a certain tendency to do it because of the ease of acquiring this type of loan.