How Much Should You Borrow in a Short-Term Loan? - ACE Cash Express

How Much Should You Borrow in a Short-Term Loan?
Unexpected expenses can strike at any moment. Car accidents, hospital visits, and other events can turn your financial
world upside down. If you're considering taking out a short-term loan with ACE, you want to be informed about your
options.
At ACE, anyone is free to apply; however, the amount you can borrow depends on a number of factors, including your
state, the type of loan you’re interested in, and your income.
Whether you’re considering a short-term loan from ACE or another lender, you should always ask yourself a few
questions as you decide how much money to apply for.
How to Decide if a Quick Loan is Right for You: 4 Questions to Ask
Why do I need this loan?
There are many reasons you may decide to apply for a short term loan, installment loan, or other types of loans.
However, a short-term loan may not be your best option in all circumstances. Some instances when you may decide to
apply for an online loan include:
Paying for unexpected expenses
Paying bills due before your next payday
As a smart spender, you know the importance of maintaining good credit history. With that in mind, remember shortterm
loans are not ideal for:
Paying off other loans
Buying “nice to have” items that may be out of your current budget

Having extra cash in your pocket
How much money do I need?
It can be tempting to ask for the maximum loan amount available to you and hope to be approved. After all, if you get
more than you initially expected, you can do even more with the money, right? Wrong. "Overborrowing" is a lending
phenomenon in which people borrow more money than what they need. Overborrowing can result in feeling that you're
drowning in debt with no way out.
If you're borrowing money for upcoming bills or car repairs, you likely have a specific dollar amount due.
How much money can I easily repay?
When you're in need of a short-term loan, it's easy to get caught up in the present need and not think into the future.
Being approved for the money you need to stay afloat is a top priority, but you could put your future self in a dangerous
spot if you don't think ahead.
Part of avoiding overborrowing includes keeping your current budget in mind before you apply for a short-term loan.
Make sure you will be able to repay the full balance of your loan within the term period.
You can use a loan calculator online or do the math yourself:
1. Determine the specific dollar amount of your expense
2. Calculate your monthly budget
3. Decide if and how you can manage regular repayments on the loan amount
This will help you determine the amount of money you should reasonably apply for and be able to repay.
Is a short-term loan the best option?
There are many methods to borrow money when you need it. You can use a credit card to pay for unexpected expenses.
You can borrow money from friends and family. You can apply for a personal loan from a big bank. You can also choose
to apply for a short-term loan.
Determining which borrow method is best depends on a few factors:
How much money you need
Your ideal repayment timeline
What you’ll use the money for
Your credit history and expectations for approval
Your banking history and relationship with traditional banks
Weigh your options before applying for a short-term loan. You may consider the interest on the loan, the repayment
schedule you expect, and your actual level of need. Then, you can make a decision you feel confident about.
Is an online short-term loan the best option for you? You can learn more about loans at ACE and apply today for the
money you need.