Friday, February 14, 2014

Benefits of an Installment Loan
Times are tough. Banks are lending less and less, and you may need a loan to take care of your essential living expenses without depleting your entire paycheck.

Installment loans help you get cash when you need it most. If you've been turned down by traditional banks and turned off by payday loan scams, an installment loan could be a good option.

It's harder now more than ever to get the loan you need from your bank and it takes longer to get approved, especially if you have less than desirable credit. Typically, installment loans have a high approval rate, as well as a shorter approval period. They are especially helpful for people with poor credit who need to get cash fast.

Another advantage is that an installment loan usually provides more money than a typical payday loan. Payday loans offer a quick solution for your cash worries, but repayment is expected more quickly, with a high rate of interest, and harsh penalties for late payments. Amassing debt on your credit cards can kill your credit rating and push you further into financial turmoil. Installment loans offer lower APR (annual percentage rates) and lower EAR (effective annual rates) than payday loans. Paying off your loan is easier and payment options are more convenient than paying off credit card debt.

The most important aspect and biggest difference from other loan types is the time you are granted to repay your loan. Even with a higher principle, the installment loan allows for an extended payback period, giving you the time you need to manage your budget. Your loan can even be deducted from your weekly paychecks, saving you from late and missing payments.

Installment loans are the best option when:

• Financial emergencies occur
• You want to allot a weekly budget for repayment
• Typical banks refuse your loan
• Credit card debt is adding up
• Bad or no credit stops approval

Installment loans are preferable to payday loans and credit cards because:

• More time to repay the loans
• Typically Lower APR and EAR rates
• Convenient repayment options
• Better options for your credit rating

When you have bad credit or no credit, you can't count on your bank to give you the loan you need. You may even wait just to be rejected. By then, bills pile up and credit card debt accumulates. Payday loans are a costly and often times risky alternative.

You have more options. You have the option to set your payment plan. You can pay smaller amounts over a longer period of time, allowing more freedom for your weekly budget or pay the loan back quickly. Installment loans offer fast approval, even for customers with bad credit or no credit. In many cases, you can have the money you need the same day you apply.

It doesn't take much to get approved. With your employer's cooperation, it only takes a few documents to help you get the money you need when you need it. Typically, to qualify you will need:

• Checking account (open for at least 6 months)
• Proof of consistent income
• Proof of residency (2 current pieces of business mail)
• Current phone bill
• Valid driver's license/State ID
• $250 minimum net income per week

Don't let high rates and credit cards derail your finances. Installment loans are ideal when you need money right away and don't want the pressure of a short payback period.

1 comment:

  1. payday loan has been planned to give out short term financial aid to all salaried people in order to carry out multiple excess domestic needs at the mid or end of the month. Thanks for sharing your experience.