Loan Express does not require credit checks, decline a loan based off a credit check, nor do credit checks affect the minimum approved amount of the loan. The following article is purely for educational purposes.
Type “online short-term loans Canada” into the Google machine, and you’ll be inundated with options for quick approvals and no refusals. Now, some of those options will be better than others, while others might border on usurious. The best way to ensure you receive the best short-term loans Canada offers is by learning about them and discovering what to use them for.
Short-term loans span up to two years. Anything more than that is a long-term loan. Many online short-term loans Canada offers can have terms of just a few months or weeks. Generally, short-term loans often have higher interest rates than long-term loans, making it crucial to take out reasonable amounts you can pay back promptly. Being selective with short-term loans and applying for the appropriate reasons is vital. Otherwise, you’re putting yourself under undue financial duress.
Why Would You Need a Short-Term Loan?
A short-term personal loan can be a lifesaver when you’re in a financial bind and need money immediately.
Typically, borrowers take out short-term loans for the following reasons:
- Financial emergencies.
- Urgent bills.
- Poor credit.
- Debt consolidation.
- Improvement projects.
- Unforeseen Expenses.
- Business expenses.
We’ll explore each of these reasons in the section below.
7 Reasons to Get a Short-Term Loan
Here’s our list of reasons to take out short-term loans in Canada.
Financial Emergency
Job loss in these uncertain times is one of the most significant financial emergencies a Canadian adult can face. Canada’s unemployment rate rose from 5.5% in September to 5.7% in October 2023.
Around 64% of Canadians can cover three months of expenses with their emergency fund. 91% of Canadians who lose their job find work within a year–but that could still be longer than three months.
We’re in a day and age where rent keeps soaring, and the average monthly mortgage in Canada is well over $2,000. From groceries to gas prices, the cost of living in Canada is through the roof. Therefore, a short-term loan can give you the security you need until you find a new role after losing your job.
Urgent Bills
Whether it’s due to job loss, investments gone wrong, or you’ve made a significant financial decision (e.g., home or car purchases) that set you back, it’s possible to fall behind on bills.
If you don’t pay your bills, the results could be disastrous. You could lose power or hot water in your home. You might lose your internet service–a loss you can’t afford in 2024. Plus, who wants to be hounded by debt collectors?
When you fall behind–for whatever reason–short-term loan approval can float you the necessary cash to pay the following urgent bills:
- Mortgage
- Rent
- Credit card
- Bank overdraft fees
- Car insurance
- Mobile
- Internet
- Hydro/electricity
Poor Credit
It might seem counterintuitive to take out a loan when your credit is already poor. However, you can give your credit a healthy boost by repaying a loan successfully. You’ve got to be careful in this scenario. Have a plan to ensure you satisfy all the loan obligations in a timely fashion. While poor credit can make it more challenging to take out a loan, options exist for low-credit borrowers. Typically, they come with higher interest rates, making it even more crucial to pay on time.
Debt Consolidation
Do you have multiple debts eating away at your finances? In many situations, like with your credit card, making minimum payments can exacerbate your issues. It turns the debt into a revolving door.
You can take out a short-term loan to turn your multiple debts into one with more favourable terms and rates. This approach, known as debt consolidation, will provide you with the cash to pay off your several debts–improving your credit history–and give you breathing room with lending terms that make more financial sense.
Improvement Projects
Are you looking to sell your home in the near future? Something like a bathroom remodel can yield a return of 102% when you sell. Potential homebuyers are also enticed by updated appliances like refrigerators and dishwashers. In these instances, short-term loans make sense because you’ll typically enjoy a return on your investment, profiting from your loan.
Unforeseen Expenses
Did you know that 25% of Canadians don’t have enough personal cash flow to cover $500 in unforeseen expenses?
For example, medical costs–despite Canada’s free healthcare–are a growing issue. Prescriptions, vision care, and dental costs aren’t automatically covered and often require out-of-pocket purchasing. Thus, any emergencies related to these issues could yield unforeseen expenses.
Also, there’s a possibility that your car’s engine might break down, requiring quick access to funds for repairs so you can continue traveling to work daily without disruption.
We’d be remiss to not discuss family members or friends who may need financial help and can’t get approved for financing. You might want to help, and a short-term loan can help you do just that.
Business Expenses
Do you have a business idea that’s bound to generate interest? A short-term loan can give you the added financial boost you need to get your enterprise off the ground. The moment you start generating revenue, the loan will begin paying off.
Similarly, a short-term loan can give you the necessary capital for necessary software, or it could help you cover payments to contractors, freelancers, or third-party B2B services.
Why Get A Short-term Loan With Loan Express?
Loan Express designed our lending approach and process to help you with the above mentioned issues. We’ve catered our services to get you out of a jam, help you seize a moment, or give you extra breathing room when payday seems worlds away.
You can get a cash advance in an instant as needed with us. You don’t have to wait at the bank for a snooty manager who’ll turn their nose up at you. Nor do you need to stay on hold. Instead, you just need to spend five minutes on Loan Express to get a loan of up to $1,500 for life’s unexpected events.
Learn more about our streamlined loan approval process by reaching out for a consultation.
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