There are a multitude of non-traditional lenders that can be found online. A simple search for installment loans yields over one-million results. Installment loans are easier to pay back than payday loans, which is why sites are featuring them as an alternative. The interest rates are still extremely high, but slightly lower than the payday option.
The advantage is the opportunity to make smaller payments over a six to twelve month period instead of paying it all back in one huge payment. The late fees are as high as payday loans, but customers are less likely to make payments late. The amount of payments is based on the times customers are paid each month.
The total amount available in one loan varies among companies. Some only allow first time customers to borrow up to five hundred dollars. That practice keeps the risks down while the company is assessing whether the customer will honor the agreement or default.
People utilize installment loans more than once if they are approved. Returning customers can usually borrow higher amounts. The difference with MaxLend Loans is that customers can borrow up to one-thousand dollars the first time they apply with the company. Those who return can borrow up to one-thousand and two-hundred fifty dollars.
Prevent the Need for Emergency Loans in the Future
Continuing to borrow money via installment loans is not wise money management. There are simple ways to prevent the need to cover high interest rates in the future. Building up credit to be eligible for a traditional loan is one option. The interest rates are significantly lower. Some banks and credit unions can approve personal loans quickly.
One is to determine a budget that allows you to live within your means. Add up what is spent each month on housing, food, utility bills, a car payment, any prescriptions needed, and entertainment. If that total is more than the monthly income, changes are required.
Cut costs on wants in order to have enough money for the needs. Bring a lunch to work every other day to cut eating out costs in half. Instead of taking the family to a movie theater, have movie night at home. The movie may not be a new release, but the savings is incredible.