If you are in need of some quick and simple way to get instant cash, then going for an online installment loans for bad credit is the right step for you. Whether you need loan as small as $1000 or as big as $10000, you can easily get it through installment loans. Different lenders accept different credit scores, so there is a high chance that you will qualify even with a bad credit rating.
Though new to people, installment loans have been around for quite some time now. If you have taken a mortgage or car loan before, then you are well aware of the specs of an installment loan. There is a particular loan term in which you have to make the payment and a particular amount is set to be paid every month. Usually the rate of interest is fixed, so a part of the monthly payment is spent on the principal and interest. In comparison to the other loans, the installment loans are easy to manage and can be of short or long term.
Why shouldn’t you choose a payday loan?
Previously people who needed financial help always chose payday loans and lenders. But the basic problem with payday loan is that the large lump sum amount gets way too heavier on your next paycheck. A lot of people fail to afford it and thus enter the cycle of indebtedness.
But, luckily, installment loans aren’t dealt in the same way. They are often unsecured loans which means you don’t have to submit any collateral for it. A lot of lenders go for alternative credit check say a pay stub. So, usually there isn’t any major credit check. Rather than pulling hard on your credit report, there is a very soft pull. There are some lenders who only need a proof of your income to verify the loan. So, it is up to you to choose a reliable and good lender to get your loan approved.
Another benefit of installment loans is that you can enjoy same day deposit. Once you have met all the requirements and submitted the supporting documents, you can easily get your loan sanctioned and cash deposited in your account as soon as possible.
Payday loans vs. Installment loans
Payday loans are big payments which a lot of borrowers may fail to pay. Instead of paying small amounts, you have to save a hefty amount in a short time period. On the other hand, installment loans don’t do this. They have a simple to handle repayment procedure. The monthly payment is a pre-decided amount depending on the loan amount, interest rate and tenure. This is why there are more manageable in comparison to payday loans.
A lot of borrowers who have taken both these loans prefer installment loans more. The stress of paying the payday loan is more than installment loans. Plus, there isn’t any hard checking on your credit rating as in payday loans. So, people prefer going for installment loans rather than payday loans.