There may be a problem with financial liquidity in every family. With low and medium earnings, all you need is a sudden refurbishment of the apartment, a more serious car defect, a sudden illness or just a desire for a family holiday trip to a warm place. In such cases, two options are considered – taking a loan from a bank, which is not always possible, and for many reasons, or using one of the many loans offers from non-bank companies.
An installment loan for everyone
Until recently, the biggest difficulty for many people was the need to repay a loan taken from a non-bank loan company once. This is why payday loans for small amounts, the ones that can be repaid with the next salary, were the most popular. However, for some time the financial market has been supplemented with the missing link, i.e. payday installments.
For whom installment loans
The requirements of lenders became more stringent with the advent of installment loans. Even to receive payday installments, certain conditions must be met. The age range of the borrower, the source of regular income and preferably no entry in the debtors’ database is assessed. Of course, depending on the loan company, the criteria for assessing creditworthiness may be more or less restrictive, but it is worth having no illusions here. It is the lender who bears all the risk and he will always want to minimize it.
The loan amount should also be matched to the repayment options, so it is good to consider the number of installments and the amount of each installment to match your monthly income. Payday installments are the optimal solution, but on condition that they do not generate further problems.
Advantages of installment loans
In order to increase your chances of getting a loan in installments, it is worth making efforts always in the same company, especially when it would not be the first loan and all previous loans did not have late repayments. This definitely strengthens the position of the applicant and allows him to apply for a much larger amount than before. Thanks to this you can get even the maximum amount usually proposed by a given company. In case of good contact with the lender, in case of any difficulties with repayment, you can try to postpone the repayment of even the whole debt. In such a case, a new repayment plan should be drawn up and implemented carefully so that interest is not shaken by the household budget.
Disadvantages of installment loans
The biggest disadvantages of payday installments are the relatively low grant ability of this type of loan, or at least lower than payday loans. The verification of borrowers and the company’s interference in the amount of the borrowed amount are also more accurate here. In a word, the lender is trying to secure his best interests. The decision-making process is also longer. Fortunately, it will never be as long as in a bank, but sometimes you have to wait up to 3 days for cash, and it is known that ordinary payday loans appear on your account in several minutes.
The borrower must also be aware of it. installment loans are always more expensive than one-time repayments. The higher the amount and the longer the repayment time, the higher the payday fee. Higher costs will also arise with even the smallest delay in repayment, which is why all these nuances should be considered before applying. They should not inhibit us but force us to think rationally.