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What Are Short Term Loans?

When considering whether or not to apply for a short-term loan from Cash Central, a few questions may arise. We aim to be a resource for you when considering your loan options, and we pride ourselves on offering fantastic customer service. Even if you’ve determined that you need access to funds quickly and landed on Cash Central as your lender (great choice, by the way!) you may have a few questions such as: What is a short-term Loan? What’s the process to apply for a short-term loan? How does short-term loan repayment work? What’s the process to apply for a short-term loan online? Perhaps you’re still wondering if you should apply for a short-term Loan at all. We’ve got you covered. Let’s dive in!

What is a short-term loan?

When something unexpected happens that requires a cash solution, a short-term loan could be helpful. At Cash Central, we offer Payday Loans which are personal, short-term loans that can be utilized to help you through a rough patch and on to greener financial pastures. A short-term loan is obtained with the intention to pay back the loan in a short amount of time.3 In the instance of a Payday Loan, repayment is typically expected on or around your next payday depending on the terms of your loan.

Small short-term loans, like the Payday Loans at Cash Central, are not intended to create long-term solutions to financial problems. Rather, these loans are meant to help customers who find themselves in a tough spot temporarily.

What’s the process to apply for a short-term loan?

Once you’ve determined that you want to apply for short-term loan options  like a Payday Loan from Cash Central in particular, the process is simple. We have a quick short-term loan application that can be completed in three easy steps. Lending decisions are rendered in minutes, and if approved, you can access your funds in your account as soon as the next business day. Approval and deposit time frames vary from state to state, so be sure to thoroughly read all information provided at the time of applying. Funding times are also subject to your financial institution’s policies. You will receive a quick approval which will specify the amount you’re eligible to borrow.

You’ll want to have some personal information handy when applying for your loan. When applying online at Cash Central, you’ll need a verifiable source of income, a valid checking account in your name, a valid current telephone number, and your Social Security number. You must be at least 18 years to apply unless you live in Alabama; in Alabama you must be 19 years old to apply. The process of applying for a Short-Term Loan varies by lender and state, but the process at Cash Central is very simple and easy to follow.

How does short-term loan repayment work?

One of the highlights of utilizing a short-term loan2 like a Payday Loan is that you will have your loan paid off quickly meaning you won’t have to create a long-term payment plan for a smaller, short-term issue you’ve faced. When you’re ready to start your loan repayment,5 there are a few points to consider and keep in mind. First, you’ll want to always stay on top of the amount you owe. Along with making sure that your bank account information is accurate when filling out your payment preference (to avoid a failed payment), you want to know the amount you owe so you can ensure adequate funds are available in your checking account.

Mark your calendar with your due date to avoid being late, and make sure to create a reminder for yourself utilizing a smart phone or planner if necessary. Depending on your state of residence, you may be able to arrange a courtesy move extension, refinance, or an extended payment plan6 if available. You’ll want to check with a Cash Central representative if you have questions about loan repayment. Keeping in contact with your lender is important no matter who you work with to secure a short-term loan. Communication is key if you face any additional hardship and need to discuss your payments or loan, so feel free to reach out to a representative with any concerns prior to your loan due date. As with any loan, you want to have a repayment plan in place1 prior to applying for the loan. Proper planning can help you stay on top of your finances and have a positive experience with short-term lending.

Can I apply for a short-term loan online?

Not all short-term loans are available online; however, Cash Central offers applications, approvals, and funding conveniently online. Applying for a loan is a relatively simple process as discussed above, but applying online is simple and convenient. There are many online lenders who will follow a similar process to Cash Central, but make sure to do research regarding the lender and their legitimacy. The internet can, quite frankly, be a bit of a scary place. Working with a lender online should be done with caution. Make sure that you understand the process thoroughly prior to proceeding. The rates and terms associated with the loan you are considering should be available to you prior to finalizing any application or loan agreement. Make sure you take a look at the rates as well as any associated fees and take time to understand how your repayment will work. Payday Loans can provide a much-needed opportunity to receive cash for many customers, but not all customers are an ideal fit for a Payday Loan because it is an expensive form of lending. Take your time considering your options, particularly when working with an online lender. Ensure that the company is reputable and always feel free to ask questions. A great lender like Cash Central will be happy to provide you with the necessary information to make you feel confident about your decision to apply for a loan.

Should I apply for a short-term loan?

Taking the time to research short-term loans prior to applying is a great idea because taking out a loan of any kind is a serious decision. If you need funds quickly and you’re qualified, a Payday Loan can be a helpful short-term loan option. However, as mentioned, Payday Loans are an expensive form of lending, so make sure you understand how the loan works and that it’s the right fit for your situation before applying. Sometimes, Payday Loans aren’t painted in the best light if we’re being honest, so let’s address that for a moment.4 If you are in a pinch and you have no other options, a Payday Loan could help you gain access to needed funds quickly. If you’ve determined that your need for cash as quickly as possible outweighs your need to avoid a loan, then a Payday Loan may be for you. Information is key and is readily available not just on our blog but in many corners of the internet. No matter your decision, and whether a loan is right for you or not, know that Cash Central is rooting for your success!

* In California, deferred deposit loans are provided in accordance with the Department of Financial Protection and Innovation pursuant to California Deferred Deposit Transaction Law, Cal. Fin. Code §23000 et seq. Exact funding time depends on the terms of your financial institution.


1Miller, Mark (2022, Aug 12). What you need to know about short-term loans Retrieved from: https://www.bankrate.com/loans/personal-loans/risks-of-short-term-loans/

2DeMarco, Jaqueline (2022, Aug 26). Short vs. long personal loan terms: How to choose the right one Retrieved from: https://www.foxbusiness.com/personal-finance/short-vs-long-personal-loans-repayment-terms

3Baluch, Anna (2019, Sep 23). What Is a Short-Term Personal Loan? Retrieved from: https://www.experian.com/blogs/ask-experian/what-is-a-short-term-personal-loan/

4Price, Jessica (2022, Oct 17). What to Consider Before Applying for a Payday Loan Retrieved from: https://www.speedycash.com/resources/644/loans/what-to-consider-before-applying-for-a-payday-loan/

5Cash Central Blog (2015, Jan 28). How Do I Pay Back My Short-Term Loan? Retrieved from: https://www.cashcentral.com/blog/how-do-i-pay-back-my-short-term-loan/

6Cash Central Blog (2020, Nov 23). Unable to Make Your Cash Central Payment? Here’s What You Can Do. Retrieved from: https://www.cashcentral.com/blog/options-for-your-cashcentral-payment/