Term loans are a great idea to help you purchase large-ticket items or to simply get the money you need to get ahead. With its fixed interest rate a term loan is easy to understand and you can pay it back in a predictable manner. You'll know how much payments are before you sign a contract.

If you want to apply for short or long term personal loans, you should follow these steps:

1. Gather your financial data. You will need to submit your credit score, proof of income and other loan information before a company will consider your long term loan application. This demonstrates your ability to pay them back and represents the risk level they take on. It's best to have all the necessary information available before applying.

2. Apply for long or short term loans with various companies. Keep your options open and apply to a couple of different companies so that you can easily compare results.

3. Research the terms of your short or long term loan before you agree. Make sure you understand the interest rate and the terms of repayment. Choose the company that offers the best deal.

Action Steps
The best contacts and resources to help you get it done

Apply for short term personal loans to cover unexpected expenses

Occasionally, you may come up a bit short when you have unexpected expenses. Short term cash loans may be what you need to get through a rough patch. You can even find short term loans for bad credit.

I recommend: Look into payday loans to help you out. You can apply through Personal Cash Advance or CashNetUSA.com. Note that the interest rates on these loans are often very high and you should avoid using short term cash advances on a regular basis.

Use long term loans to cover major expenses

Some expenses, such as a mortgage or education, require a large amount of money. In order to keep your good credit, you need a long term loan that will allow you to take your time when paying back large sums.

I recommend: Look into ING Direct for your mortgage needs. Their low rates and low closing costs make them an attractive choice. Through Studentloan.com, Citigroup offers a number of ways to pay for your education.

Find a long term personal loan with a 5 to 10-year payback plan

Sometimes, you may have financial needs that are not as immediate as what you'd use a cash advance for, but they don't require the amount of money that a very long term loan requires. You need to find something in the middle.

I recommend: Many people want to take a long term personal loan for debt consolidation. This allows you to repay your debt at a lower interest rate. Wells Fargo offers a popular debt consolidation loan. Others need a small loan to help their business get off the ground. BusinessFinance.com allows you to search through many different business loans.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Always pay your term loans back on time. This builds good credit and will allow you to be eligible for lower interest rates next time you apply for a loan.