Short term loans and bad credit personal loans both offer nontraditional credit
for consumers in a tight spot financially. But there are subtle differences between the two types that may potentially confuse customers.
A bad credit personal loan does not require a credit check, but includes fees and/or interest rates that can be rather high. These loans are designed for people without a strong credit report card, says Subprime Blogger, so the fees are high to account for that lending risk. These loans are like a car loan, in that customers pay monthly payments. Short term loans and cash advances charge one upfront fee that usually ranges from $15 to $35 for every $100 borrowed, according to the website. These loans are often available online as well, which offers more options for loan customers. According to the website The Brilliant Stories, applicants for these loans must be 18 years old, meet income requirements and, sometimes, they must provide character references. The service also does not require a credit check, just like a bad credit personal loan. No matter what a customer chooses, both loans offer them a chance to obtain needed cash quickly and easily.