It is not usually easy or cheap to get your hands on short term cash in terms of a loan or money to tide you over while you are shopping for a loan. Most financial bank institutions flourish on locking you into loan terms for years so that they can maximize interest and make a profit. However, as consumers, there are some tips and suggestions to borrowing a short term loan that will leave you with some money and at a reduced cost. Read below to learn more.


 Borrowing Technique

In the financial services industry, consumers are at a disadvantage sometimes as institutions try to box them into one category of borrowing. If you play by the rules set by these banks, you may end up paying for it in the long run. If you need a short term loan from a bank, it will cost you to get the loan, that is, if you don’t know how to approach the situation. Before you sign the dotted lines, be sure to ask the bank representative what is the most affordable way to borrow over a specific period of time. Take what that is and turn it into flexible cash that you can manipulate.  Are you confused or worried that this is not legitimate? Don’t be. This is the technique that the wealthy use to get ahead and you can too.


 Your Options

If you want to borrow for just one year, ask yourself:

How much money do you need to borrow? If you do need to borrow, keep the amount at a minimum. Do you need actual cash or can you use a credit card instead? What is the length and term of the loan that would be realistic to your budget? Is it possible that you will be able to repay the loan within six months?

You have several options of borrowing to receive an interest free loan:

·       With a credit card at zero percentage interest

·       Zero percentage overdrafts

·       Flexible loans


 Introductory Interest Rate

Get a new credit card that offers zero percent introductory interest rate. Use the card to make purchases. Do not use the card to do balance transfers or you won’t be able to make the appropriate or sufficient purchases that you need. The maximum amount on the credit card will depend on your income and credit history. If you don’t have enough on the card to use for your purchases, you can apply for additional credit cards with the same zero percentage interest rate. Be sure to make those purchases and repayment within the zero percentage time period.


 Bank Overdraft

You can also use a zero percentage overdraft. All you have to do is to move a specific bank account with zero-percentage overdraft and use the overdraft to borrow a low amount of money for a short period of time, no more than twelve months. Borrowing will also depend on your credit history and income.


 Flexible Bank Loan

Some bank institutions also offer flexible loans that allow customers to borrow a loan and repay it in a short period of time without any penalties attached. You may have to pay interest on this loan, but usually a lower interest rate than the norm. Speak with your bank to find out how you qualify, but this also depends on income and credit history.