Payday installment loans are loans that allow you to repay the borrowed amount over a pre-determined period of time. These loans are often based on your personal credit history and monthly income. Many opt for payday installment loans, especially those with low loan rates, because they are easy to apply and qualify for.
When applying for a payday installment loan, you will need to provide proof of your income in the form of pay stubs and a W-2. You may also need to provide a credit history, though most lenders are not dependent on this factor for their loan decisions. Many people believe that you need to have a high credit score in order to qualify for a payday installment loan. This is not always the case because most payday installment loans today are made available to those with some credit blemishes.
Payday installment loans carry high interest rates and these rates can be adjustable and may be based on the current market rates. These loans are said to be expensive because they are normally secured with no collateral and pose higher risks for lenders. However, there are numerous lenders out there and finding those that offer low loan rates is possible.
Payday installments loans are best served for minor expenses, such as home remodeling projects, paying for overdue bills or even buying daily groceries. However, due to the nature of the loan itself, borrowers are advised to utilize the loan for emergency expenses or needs only. Here are some things to consider before applying for a payday installment loan to help you find low loan rates:
· Do you really need this money? Is there any way that you can manage until your next payday and avoid taking out a payday installment loan? Consider options, such as calling your creditor and asking for additional time to pay your bill.
· Have you considered cheaper alternatives to payday installment loans, such as borrowing money from friends or getting a cash advance from your employer?
· Do you fully understand the total cost of the loan including all interest and fees and how much you will be charged if you don’t pay it back on time? It is important to look for lenders that offer low loan rates so that you can easily afford the payment. Also, read the loan agreement carefully before signing it, and keep a copy for future reference.
· Have you assessed if you can really pay the loan back on time from your next paycheck? If not, don’t risk taking out a payday installment loan or you will make your financial situation worse. Take note that aside from paying your normal expenses with your next paycheck, you will also need to pay for the fees of the payday installment loan once you take the loan.
· Are you regularly having trouble making ends meet? If so, a payday installment loan will not be an instant solution to your financial problem. You may need to consider booking an appointment with a credit counseling organization that can help you deal with your debt and talk to your lenders for you.
When in need of cash, payday installment loans, especially those with low loan rates, can be a viable option.