Short term loans and traditional lines of credit both offer necessary funds for consumers, but they go about their business in quite different ways. Forms of nontraditional credit, such as short term loans, offer short-term lending at higher interest rates, while normal loans offer more long-term options at usually lower interest rates. On paper, the decision would seem simple to a consumer. Lower interest rates sound much more appealing. But sometimes customers only need a small amount of money for an emergency or they have bad credit and are not given loans by other institutions. The appeal of short term loans is that they are quick, simple and short-lived. According to the website Articles N Tips, there are a few criteria needed to secure a short term loan. One must have a reliable source of income, a bank account and must be 18 years of age or older. Generally, if a consumer has a minimum monthly income of $1,000, he or she will be eligible, says the site. According to the Personal Money Store MoneyBlog, short term loans have consistently been misrepresented in the media. The site explains that, during the six to 12 months after they use short term loan services, borrowers are significantly more likely to retain their jobs and those without credit are able to establish positive credit scores from their proper use of short term loans.