The most common use for a payday loan is financing ordinary living expenses. In fact, these recurring expenses are what 69% of first time borrowers list as their reason for applying for a payday loan. Groceries, rent, gas for the car, and child care can quickly add up. A borrower needing a fast and simple solution may end up choosing a payday loan because payday lenders rarely check credit history and offer speedy approval. However, this quick solution is only a temporary fix to a bigger problem. Payday loans are proven to be a high risk choice and almost half of payday loan borrowers default within 2 years. Luckily, a short term loan is an alternative to a payday loan that provides similar services but with more favorable terms. Plus, the online short term loan market allows consumers to shop around. This allows consumers to choose the most affordable loan. Whether you need a short term loan to finance utilities, an emergency, healthcare, rent, education, transportation, or to cover ordinary living expenses, finding a low cost payday loan alternative can provide extra cash and get you out of a tight spot.

As previously stated, if you are considering applying for a short term loan, it is recommended to browse different short term loan products and carefully weigh the pros and cons of each loan provider's terms and rates. Maybe one creditor offered a loan estimate with a lower interest rate but high late payment fees. Possibly another loan offer included a lower monthly payment but longer terms which made the overall loan cost higher. Also, keep in mind the benefits of only applying for credit from lenders who do a 'soft pull'. This soft inquiry checks your credit score without negatively impacting the borrower's credit. Spending time calculating total loan costs and finding the best deal could save money that can be put into savings or be used to pay other bills.