When you need access to quick funds, payday installment loans can be a big help. They are specifically designed to provide immediate cash assistance in times of desperate cash needs. Aside from the quick access to funds, payday installment loans also provide a reliable financial option for people who are not qualified or have been turned down from traditional or bank loans.
Payday installment loans are unsecured personal loans. They can be easily applied for online by filling out an online application form. Processing and approval is quick and no credit checks are done. Some lenders of online unsecured personal loans may not require the faxing of documents. So, one may ask, are these easy-to-apply personal loans reliable financial options?
You’ve probably seen a lot of offers on the internet regarding these personal loans. Most of the payday installment loans that are repaid use a paycheck to make the installments. Lenders usually tell consumers that regardless of their credit scores, they can apply and qualify for these loans. However, the truth is that you generally need a good credit score, a moderate debt-to-income ratio and enough net income each month to cope with the monthly loan payments.
Although borrowers with bad or poor credit scores can qualify for a payday installment loan, they will have to expect higher interest rate compared to those with good scores. Lenders justify this by claiming they are at higher risk with borrowers who have poor credit scores.
Also, lenders may not look into your credit report, but they use the services of Teletrack to determine a consumers credit worthiness. The Teletrack is a credit reporting firm that provides credit information. The services of Teletrack help lenders decide what loan terms and deals they can give borrowers with poor credit scores.
Paying off your previous personal loans using payday installment loans is a reliable financial option as long as you make timely payments. If not, you are just putting yourself in more trouble. In addition, consolidating debts by using payday installment loans will help you focus on a single monthly payment and ease your burden of paying many separate debt accounts.
Furthermore, be careful about working with debt consolidation or debt settlement companies that require you to take out payday installment loans to pay off existing personal loans and debts. Some of these companies are only interested in collecting service fees rather than helping you settle and pay off your debts.
While payday installment loans can help you out of a financial hurdle or pay existing debts, getting a personal loan should never be your first choice to handle cash needs. Saving and paying in cash are still the most reliable financial options.