Fast Installment Loan Quotes
If you have bad credit, you have an alternative to the payday loan. That it the online personal loan. A personal loan has so many advantages to a payday loan and are usually the better option. Ready to see what you can get. Fill out the short form below and get a speedy quote from one of our lenders. It takes just a few minutes.
Why Not A Payday Loan
There are dozens of reasons to avoid payday loans. If you are in need of a bad credit loan, they are not the only option. You can also look into personal loans or installment loans. Here are some reasons to not choose a payday loan.
#1. Payday Loans Are Too Short
By definition, a payday loan is a short term loan that must be paid back on the next payday. This is just too little time for most people to get their finances in order. In addition, the repayment is a huge chunk of money that would probably take a good part of the next paycheck. This leaves the borrower vulnerable to taking out yet another payday loan to meet expenses.
An installment loan is a better option because the loan would be paid back over a longer period of time. This gives you time to catch up financially. In addition, because the payments will be stretched out, individual ones will be much smaller. They will take less of your future paychecks making them much more manageable.
So, the longer payment term is a huge reason to use installment loans, NOT Payday Loans.
#2. Payday Loans Are For Little Money
Payday loans have maximum amounts set by the state. Most loans will be capped at under $500. This may not be enough money to handle your particular need.
This is probably a good thing in a way because paying back a higher dollar payday loan in just a few weeks would be next to impossible. Still, it means that if you have a bigger problem, a payday loan might prove useless.
With a personal loan, you do not have the restrictions that you would with a payday loan. In fact, the lenders in our network can get you a quote for a loan of up to $50,000. This means they could be used to handle just about any financial problem or monetary need.
The ability to get more money is a reason to choose a personal loan and Not Payday Loans.
#3. Payday Loan Interest Is Too High
Technically, they do not charge interest, if they did, it would be pretty hard for them to justify the high rates.
What they charge is a fee per $100 borrowed. A fee might be $20 for every $100. So, a $300 loan would require you to pay back $360. That might not seem too bad on the surface but because of the short loan term, that is an interest rate well over 400%.
Installment loans on the other hand will have much more manageable interest rates. If you have bad credit, they still might be higher than average but nothing close to the interest from a payday loan.
Because of the lower interest, if an installment loan is available, you should choose it and Not Payday Loans.
#4 Payday Loans Are Not Available
In some states, you can not even get a payday loan because they are not authorized or are illegal. The status of payday loans varies from place to place. If they are banned in your state, that’s a good reason to not get one.
Installment loans are available in all states which makes for a great reason to choose an installment loan and Not Payday Loans.
Installment Loans Are Almost Always Better
In almost all cases, the installment loan is the better choice. The only time that a payday loan might be better is if you have extremely bad credit. Payday loans can often be a bit easier to get because they are for lesser amounts and lenders tend to be a bit riskier because of the high rewards(fees).
This is not to say that you can not get an installment loan or personal loan with bad credit. You can and in fact, one of our lenders may be able to make you an offer.
If you do qualify for a personal loan, the interest rate will be lower than that of a payday loan. This can save you money but you must also realize that because the loan is for a longer period, you will be charged interest for a longer time.
The main benefit to choosing an installment loan if you have the choice is because of the installments. It is very hard to pay off a payday loan and all of it’s fees in one single payment. Installment loans allow you to break up those payments which make them much easier on a budget.
So Should You Get A Personal Loan?
If you have the choice, always choose the personal loan. Get a quote for the personal loan first and if that fails, you can try the payday loan.