As you are probably aware, loans come in lots of different shapes and sizes. As a general thing, the more risk that the lending institution is taking, then the higher the interest rate will tend to be. Added to this, if a loan is secured and a longer term loan, then the interest rate might well be a little lower as well, as the lending institution gets back their set up expenses over the time of the loan. So, the shorter the term, the more expensive, due to the setting up costs. Having said that, there are quite a few occasions when a short term cash advance can make good sense. Take for instance a purchasing opportunity that comes at a bad time for you. It might well work out that the savings on the purchase more than cover the cost of the loan. Likewise with other situations, but more about that some other time.

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