The Borrower's Guide to Short-term Payday Loan Alternatives
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INSTALLMENT LOANS:

THE MOST COMMON ONLINE LOAN

During a cash crunch, an installment loan offers borrowers a simple solution and a great alternative to a payday loan. Installment loans are commonplace in the lending market. Actually, they are the most popular type of online loan available. Many borrowers use an installment loan to build their credit, pay off other debts, and finance basic monthly costs. When a borrower needs to build or rebuild their credit history, an installment loan provides a uncomplicated repayment process and clear upfront terms. Whether you need cash to buy a car, pay a mortgage, or payoff a credit card balance, an installment loan provides financing for all types of purchases. Every month for the predetermined period, the monthly payment remains the same. Even if a loan isn't needed, borrowers with bad credit or no credit can take out an installment loan, hold onto the cash, and repay it using the loan itself. In the end, the lender gets their money and the borrower's credit history shows a loan repaid on time. For borrowers who need cash and want to strengthen their credit score, an installment loan can be an effective tool to show creditors your creditworthiness while giving you some extra money.

Installment loans are a type of personal loan that a borrower repays over regular installments. The payments are consistent periodic installments that represent a portion of the loan's interest rate and principal. There are several variables that determine the interest rate of an installment loan. For instance, the loan value, down payment, borrower's credit history, and loan term can affect the interest rate a creditor chooses to offer. Also, before taking out any loan, be honest about your budget. Having a realistic idea of what you can afford can prevent future missed payments that will damage your credit.

Payday Alternative FAQs

Most Common Questions about Payday Loan Alternatives

What is a short term loan?

A short term loan is a small dollar loan that allows borrowers to obtain cash on short notice. Short term personal loans are preferable to "payday loans" due to their lower loan rates and better loan terms for every credit type.

What are payday loan alternatives?

A payday loan alternative is an online loan option for millions of consumers who need to get fast access to cash before their next payday. Short term loans are a popular type of alternative, with lower overall loan fees.

As a borrower with bad credit, can I get a payday loan alternative?

Borrowers with bad credit can apply for a short term loan. The interest rates and terms will vary depending on your credit score, but are almost always better than a traditional "payday loan."