In this era where people want convenience and quickness, it is quite common to use credit cards. However, excessive use of credit card is not a good habit. Not only it adds to your interest charges quite heftily but it will also pile up your debt. Your finances can take a seriously bad turn if you don’t try to avoid credit card use.
If you want to spend a large amount of money, it is better to take out a simple loan than spend with your credit card. This way you will know your interest amount up front and have the convenience of paying back in easy installments as well.
One of the worries with loans is if you have bad credit. However, you can choose direct lenders who can offer affordable monthly payments. These companies are quite open about advertising their loan packages and have relaxed rules and regulations to accommodate bad credit owners.
Why People Love Monthly Payments?
You might have a bad credit score but it does not mean you can’t have expenses. There could be several situations when you can need money immediately. With a bad credit, you are probably already dealing with some debt situation. Therefore, your only worry is not just qualifying for loans but how are you going to pay it back.
- If you have a bad credit score and need money immediately, it is highly suggested that you get an installment loan.
- With installment loans, you will have the ease of paying over an extended period of time. If you can find the most suitable direct lender, you can even get flexibility with over how long you will pay the money and how much to pay every month.
How to Choose a Loan?
1. If you are looking for lenders who offer loans for people with a poor financial history and have high guaranteed approval rates, it is possible that you will only focus on monthly payments’ interest you are being charged or how much you have to pay every month. Don’t make this mistake. The right way to choose the best installment loan is to consider all the factors involved.
2. If you only focus on the interest rate or monthly payment factor, you might end up choosing a deal that benefits the lender and not you; leading to more cost for you. If you have bad credit, you are likely do not have much control over the interest rate but more on how long you take to pay back the money.
How Big are the Monthly Payments?
Of course, the longer you take the more interest you have to pay. Most loans have interest charged on a daily basis. You will need a loan calculator or talk to a financial expert. In short, you need to find a balance among the interest rate, amount of monthly installment, and the total duration of the payments. It is suggested to pay extra in interest if you are getting the affordability of paying the loan.
Choose a direct lender that can report your loan payments to the credit bureaus. This way when you pay the loan installments regularly and the entire amount back on time, you will be able to improve your bad credit score. When choosing the direct lender, don’t forget to manage a thorough research to find the most reliable and trustworthy lender.
How Can I Improve my Credit?
If you are wondering how you can improve your financial score, the answer is simple. Here at Loan Away, we give our customers the second chance to show us that they can be reliable borrowers.
1. You take out a loan from us
2. Pay on time
3. Monitor your loan balance
4. Loan Away reports to EQUIFAX
5. Watch Your Credit Score Grow