RoxanneNow you can get quick cash regardless of your credit, and you can even build your credit to fix your finances with one simple solution.
What are payday loans famous for? Besides being a last-ditch option for quick cash when you’re in a pinch, they’re known as being a form of predatory lending. Why? Because they can hit you with 400 percent interest rates that can put you in an even worse financial bind than before, making them less than ideal options when you need a loan.
What would possess someone to get a loan when it’s famous for being incredibly expensive and not worth the trouble? Having a poor credit history since most lenders run credit checks before approving a loan.
Does this mean that if you have no credit or bad credit that you’re doomed to use payday loans in the future? No, as there’s another type of loan that can fit your needs, and we’ll take a closer look at it now.
The Advantages of an Installment Loan Over a Payday Loan
If you’ve never heard of an installment loan before, now’s the time to get acquainted with it, as it could get you the cash you need minus the 400 percent interest rates from its payday counterpart.
For this article, we’ll discuss the features of an installment loan from Possible Finance.
This online lender has an app that you can download to your phone and use to apply for an installment loan. If all goes well, you could end up with a $500 loan to pay some bills, buy food, get your car repaired, etc.
While bad credit is usually an obstacle that can limit you to a pricy payday loan, it’s not an issue with a Possible Finance installment loan, as they won’t check your credit. What will they check? Your driver’s license, Social Security number, and checking account to ensure you have some sort of income to repay the loan.
How is an installment loan better than a payday loan? First, the application process is simple, and you could get approved in minutes and have the cash you need to take care of an emergency. Second, repaying an installment loan from Possible Finance is easier and less stressful. Instead of having to repay the entire loan with your next paycheck, as a payday loan would require, you can pay everything back within two months. Even better, you have two weeks to make your first loan payment, but you can extend that to a month if you need extra time.
Third, a Possible Finance installment loan can build your credit. Since the loan repayment is spread out over two months and your payments are reported to the credit bureaus, you get the opportunity to increase your credit score. If successful, your higher credit score can lead to better loans and credit cards in the future to increase your spending power and decrease your interest expenses.
Does an installment loan have any drawbacks? Compared to more traditional loans, it can have higher interest rates. For this reason, use an installment loan from Possible Finance only for an actual emergency. And as always, before signing on the dotted line, make sure you’re clear about any fees, interest, and rules pertaining to your installment loan.
