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Term Loans

Twenty-Spot’s 3-5 year TERM LOANS based on income are perfect for borrowers who need CASH and do not have any credit – cards or accounts.The credit score needed to qualify is 670, and interest rates will depend on the information in the credit report.

About Term Loans

There are many different kinds of term loans. Some examples include student and car loans, mortgages; and they are utilized for both personal and business lending. Personal term loans are thought of as riskier to the lender; while qualification requirements are typically more lenient from businesses, as compared with traditional banks, according to Nerd Wallet. Term loans can make investments more affordable for small companies, and help to build business credit.

Depending on an individual’s finances, term loans are usually more affordable, the shorter the term. Early re-payment reduces both the risk of defaulting in the future and the overall cost of the loan. Of course, this is because of the accruing interest; the longer the term, the more money a person will end up paying to borrow the funds. In contrast, early re-payment of a long-term amortized loan, may only be beneficial to the borrower depending on the number of payments previously settled towards the initial interest.

Comparing Rates

What’s often most impactful in regards to the term loan are the interest rates and annual percentage rates, normally ranging between 6% and 99%, says Nerd Wallet. Short-term businesses loans, however, are sometimes extremely costly, with APR’s that run into the triple digits. A traditional long-term loan, on the other hand, will most likely have both lower APR’s and monthly payments (LendGenius, 2019). Twenty-Spot interest rates will generally range between 5% and 19%.