Online Installment Loans better than a Payday Loan
If you're trying to determine which type of online loan is the best solution for your financial needs then you have probably been doing research on paycheck advances and installment loans. Find out why instead of borrowing until payday, installment loans are a much better alternative even if your credit score isn't all that it could be.
Main differences between payday loans and personal installment loans.
and payday advance loans have a few things in common, but here is how they differ:
1. Loan amounts
Installment loans provide large amounts of money, up to $5,000 while payday loans in general have a ceiling of $1,500.
2. Loan terms
Personal installment loans can be repaid in smaller bi-weekly or monthly payments while payday loans require you to pay the full principal, plus interest on the next payday. Failing to do so will lead to penalties.
3. Loan rates
Payday loans have much higher rates than personal loans and, sometimes even up to 1500% APR. Installment loans have much lower rates, for example some lenders we work with go as low as 11.24% APR, however credit score plays an important role when it comes to the final APR.
Can I Get an Installment Loan with No Credit Check?
36monthloans.com does not perform credit checks as we are not a direct lender, but almost all the companies we work with perform credit checks in one way or another. Most of our lenders perform as many internal checks as possible before checking your actual credit score with any of the three major credit agencies Experian, Equifax and TransUnion. You should always assume that a credit check will be performed and that no credit check loans don't really exist.
It's a well known fact that payday loans often lead to bad credit. Installment loans on the other hand offer a much flexible repayment plan offering you the possibility to repay the loan through small and manageable monthly installments.
Payday advances have been known to throw borrowers in debt spirals because of the outrageous interest rates (up to 1500% APR), diving into one loan to repay the first one and so on
What about Installment Loans for Customer with Bad Credit?
The lenders we work with evaluate your application looking at a variety of factors not just your credit score. Payment history and past financial transactions are things taken into consideration, and if things look good and clean you could qualify for a installment loan even if you have a less than perfect credit record. Failing to pay bills on time or defaulting on loans is a bad sign and you will probably have a hard time in getting a loan because you will be considered high risk by the lenders.