Payday & Installment Loans
There is a big difference in what a payday loan and an installment loan can do for you. We will explain all the differences below but, just to cut to the chase, installment loans are usually better. You can get more money, you’ll have more time to pay it back and the interest will often be much less. You can also get them with bad credit, so why not get your quote now?
Installment Loan Benefits
There are numerous reasons to go with an installment loan over a payday loan if given the chance. From the amount of money that you can borrow to the loan term, they win, hands down. Here are some things to look at.
You can get much more money with an installment loan. Payday loans are limited to a few hundred dollars to around a thousand dollars. The amount that you borrow will depend on what state that you live in.
These loans are limited because of state laws. Many states have legislated against them because of the high fees that lenders charge and the sometimes predatory advertising and collection techniques they have used.
Installment loans are not limited like payday loans so you can get more. This might make them better at handling your emergency if you need more than a two hundred dollars. This is not to say that you should take out more money than you need though. It is just a nice option to have.
Payday loans are fast to fund, but installment loans can be as well.
In many cases, your lender may be able to deposit your money directly into your bank account as soon as the next day. If you need cash right this second, it is the next best thing.
Some things can, of course delay the deposit of your money. Bank holidays and weekends will cause the deposit to be pushed out until the next working day. In addition, occasionally your lender may need additional clarification to complete the loan. If your lender contacts you, be sure to get back with them ASAP to prevent any delays.
Longer Loan Terms
With a payday loan, you need to pay back your money on your next payday. This can be difficult and if you are borrowing more than $100, it might make life tough on you.
This is how people get trapped in a payday loan debt cycle. They borrow, say four hundred dollars and then have to pay that amount back plus fees on their next payday. They make that payment and then, because it took such a huge amount of their check, they have to take another payday loan out again. This is a process that will continue again and again because making one large payment is hard to due.
With bad credit installment loans, you will have more time to pay the loan back. This gives you the ability to spread the payment out over a longer period. It also makes each individual payment much less so that they are more easily handled.
In most cases, you will end up paying less interest with an installment loan. The amount you pay will depend on your credit rating but it is often less.
This is because payday lenders charge fees for their loans, not interest. When you calculate what the interest rate actually is, taking into account the fees and short term, you get interest rates of 400% or higher.
This insane interest rate is why payday loans are regulated.
Easy Auto Loans
Car credit can be difficult to obtain when you have bad credit. If you have been turned down recently, all is not lost. We have partnered with a lending service that might be able to help you. Take a look.
Getting Approved For A Car Loan
It is no real mystery, getting approved for a car or truck loan. You have to do one simple thing and that is to make yourself less risky. Here are some ways to make yourself less risky to a lender and improve your approval odds.
Bring More Money
A larger down payment will always make your lender happy. The reason is simple. As soon as you buy that car, it’s value goes down. If the lender has to repossess the vehicle early in the loan, it is worth less than what is owed them. This means that they would lose money. If you put more money down, you improve the Loan To Value rate.
This means that if they had to repo the vehicle they would not lose any or at least as much money. This makes you much less risky.
Buy A New Vehicle
Overall, a new vehicle is going to be less risky for a lender. This is because it is less likely to break down and if it does, it will be covered under warranty. A working vehicle is one that the borrower will keep making payments on.
If a used vehicle breaks down and the borrower could not afford to fix it, they might stop making payments. This is why you are a less risky borrower with a new vehicle.
Get Better Credit
This is obvious but a better credit rating makes you a more attractive borrower. Good credit means that you use credit responsibly and that you have a history of paying your debts on time.
To improve your credit and get approved for loans easier, pay your balances down and pay your bills on time .