Many people use short term loans in an emergency; however, they can actually help you build your credit rating. Short-term loans are easy to obtain as long as you are employed.
In the majority of cases, all you need to do in order to receive a small amount of money is to provide a post dated check for the lender to hold. You can choose to make small payments until the loan is paid back.
Every payment you make will be filed with the credit bureaus so you can build your credit. With every payment, you make, you will be building good credit.
Why should you consider short-term loans? The reason is simple. You can borrow a small amount, say $100 and make your payments on time. Even if you have bad credit, most lenders will look at the new credit instead of the old and see that you have new good credit via your loan payments that you are making on time.
Of course, if you do not make your payments on time or default on the short-term loans, then you will not be helping your credit at all.
Of course, short-term loans are also great if you need fast cash for any reason. Lenders do not ask the reason you need the money. They only need to know you will repay the loan.
The interest rate of course is higher with these types of loans, but you if you need money in a hurry and cannot wait for months for the bank to approve your loan; then this is the best option.
In the majority of cases, banks will not loan small amount of money and will not loan money unless you have excellent credit or want to put your home up as collateral.