Why would you take an installment loan when a payday loan is fast, has no credit check and can be had with an easy online application?
Payday loans aren’t for every situation; they are primarily for an unexpected emergency that you can’t cover with the money you have left over from your last pay check. They are meant to be repaid as soon as you get your next check. Think about it, you can’t always pay for all of the emergencies that come your way with 1 paycheck, sometimes you need to spread out the payments and the time it takes to repay a loan. That is where an installment loan has the advantage over a payday loan; if this is you then what you need is an installment loan.
Installment loans can have a lot in common with a payday loan in that you can find a lender that specializes in lending to people that have no credit or even bad credit; you can apply online; you can find a lender that will make a decision quickly and have the money in your account in 24 hours. More importantly you can find lenders that will report to the credit bureaus which are important if you are trying to improve your credit score. Best of all the repayment terms on installment loans is generally 12 – 16 months giving you the time you need to repay the loan and making it easier on your budget because you know exactly how much each payment will be. If longer repayment terms are important to you then you need an installment loan.
Even in an emergency you can take a few minutes to comparison shop and make sure you are getting the best loan possible. Settling for a high interest loan because you’re in a panic will come back to haunt you, it’s best to make sure that you find the best rates for the credit that you have before signing for a loan. Shop around, most lenders and lender brokers have the interest rates posted on their site, once you are accepted for a loan the interest rate will be on the contract if you feel the interest rate is too high don’t sign, try another lender or call up the lender and negotiate a lower interest rate. If you are a good risk the lender would rather negotiate a little than lose your business.
Believe it or not even a low credit score doesn’t make you a terrible risk, the lender can determine using their underwriting tools if you pay back your loans and can tell if you are trying to build your credit score. Most will be happy to have a client that is working towards a better credit score.
One more thing to know about installment loan lenders. They really do have an interest in helping, you can tell from the website or their blog. There will be all sorts of articles on managing your money that your can relate to. What good is it to go to a website that advises the well off on saving to buy hi end cars if your struggling to keep the lights on? You need money managing tips that help you squeeze every last bit of value out of that dollar and maybe put some away for a rainy day.
Wouldn’t that be wonderful – having money put aside for that rainy day!