Why You Should Consider Installment Loans

Filed under Loans

Purchasing a $20,000 car is going to be hard to do with cash only. Think about how long it would take for you to amass that amount. Paying down your massive credit card debt can also be hard for the average debtor when high interest rates keep adding to the total. Installment loans can make it easier to manage large sums of debt and allow for larger consumer purchases.

Installment Loans Offer Flexibility

Getting an installment loan is great when you have a steady source of income but can not make a lump sum payment. Paying your bills each month with an installment loan means that you can borrow large sums of money without going broke. Students who need loans to pay for college can afford to pay off the loans in installments when they would never be able to do so if they needed to pay all at once.

Debts Are Paid Off Faster And Easier

No person who has a massive debt is going to be able to repay that debt in one payment. Having debt reduction loans are a good place for those in debt to start paying those debts off. Paying debts off in installments also allows someone who has financial issues to get into the habit of paying bills on time. It is a win-win for the debtor and for the creditor.

Installment Loans Can Build A Credit History

Installment loans offer a way to finance a large purchase while helping people build a credit history. A good credit history is important when applying for anything from a job to a mortgage. Credit scores are often used these days as a measure of how reliable a person is.

Allowing a borrower to pay a bill over time allows a consumer to spend more money. It will also allow a consumer to start building a credit history and become eligible for more loans in the future. Debt reduction loans are also a perfect way for someone with a big debt to pay that debt off and work toward a solid financial future.

Tags: Alternative Loan Options

Unable To Get Any Loans

Filed under Loans

With the anemic economy and higher unemployment rates, money is tight around most households. As a result, people will fall back to credit and continue to build up debt. They use their credit cards or take out a low interest personal loan in order to consolidate some of that debt. Low interest personal loans would be a great option to save some interest and money in the process, if you qualified.

Of course, low interest personal loans are not always an option even if it is easy to sign up online. If your credit is not so great, the odds of qualifying for such a loan are slim. As such, if a person with a low credit score finds him or herself in a financial bind, things will be a bit tougher. That is not to say that they do not have any options.

Companies Offering High Risk Loans

There are several banks and money lenders that boast about how you can still get money even if you have poor credit. If it sounds too good to be true, that’s because it is. While the standards for loans like this may be low, the risk is usually high. These high risk loans may come with a high interest rate or payment terms that may prove problematic for the lender. So, what is a person to do?

• Well, you could ask your parents. Depending on your age, it could be seen as a sign of desperation, but desperate times do call for desperate measures. Of course, they may not be in a financial situation to throw money around.
• Another rarely talked about option is to borrow some money from a friend. Of course, loans from friends can prove problematic. There is no interest and the terms of repayment are more lax than a bank, which is great, but it can also cause rifts in friendships.
• If you are going to borrow from friends you will want to make sure to be clear about how long it will take you to repay the debt. You will also want to be sure and not go on a spending spree after taking the loan as it does not look good from the friend’s perspective.

The options for a person with a bad credit score may seem slim, but the options are still out there. They may not be ideal, but they can still get the job done. If you are in need of cash, but cannot qualify for a loan, it may be worthwhile to look into some of the other options out there. In this economy, any extra cash can help out if used properly.