If you have bad credit, your options may seem limited when seeking a loan. Before getting a payday loan, consider reading up on online installment loans here.
Are you in need of money urgently?
Who isn’t? The COVID-19 pandemic has wreaked havoc on the finances of millions of individuals in the United States. With businesses shutting down and people losing jobs every day, the number of those looking elsewhere for money is growing.
A popular go-to option? Payday loans. However, if you’re out of employment or your salary has been slashed, lenders will certainly turn down your application.
This leads us to an ideal payday loan alternative: online installment loans.
In this article, we’re telling you why these installments loans are way better than payday loans.
Online Installment Loans Offer Lower Interest Rates
What’s the first thing that comes to mind when you think of payday loans?
With an annual percentage rate of almost 400 percent, it’s hard not to think of the sky-high interest rate and other lending charges. It’s no wonder payday loans have a bad reputation. They can easily trap you in a vicious cycle of debt.
On the other hand, online installment loans offer lower interest rates, ranging from 5 to 35 percent.
Although payday loans are an attractive prospect for most people who’re in a financial pinch and need money urgently because of their quick approvals, an installment loan is the better option. It’s manageable and not likely to throw you into more debt.
You Pay Back in Installments
A payday loan is typically paid off from your next paycheck. If you borrow $500 today, you’ll pay the entire amount including interest when your next paycheck hits your account.
Installment loans don’t have such a requirement. They’re called “installment loans” because you’re allowed to pay back in equal monthly installments.
If you take out a $500 installment loan repayable in 10 months, you’ll pay back about $50 (plus interest) every month for 10 months. This means you won’t have to worry about a big chunk of money coming off your next paycheck to pay up a loan.
When you pay in monthly installments, you’re in a better position to manage your finances and ensure you don’t end up in a cycle of debt.
Bad or No Credit? No Problem
Payday lenders usually don’t care about a borrower’s credit. As long as you can prove that you’ve got a steady income, you’ll get approved, regardless of whether your credit is bad or poor. This is one of the main reasons most people who need money quickly fall for these loans.
But why go for an expensive loan when you can get a cheaper one with the same credit history? That’s right! You can secure an online installment loan even if you have bad, poor, or no credit.
Click here to learn more about how you can quickly secure an online installment loan with bad credit.
Online Installment Loans Are Way Better Than Payday Loans
When you need money fast, you might find yourself thinking of getting a payday loan. They are approved quickly and no there are no credit checks. Don’t fall for these loans.
Online installment loans are the better option. The interest rate is fair, you get to pay in installments, and they’re also approved just as quickly. What’s more, your credit won’t be a problem.
Keep reading our blog for more handy money tips and advice.