Safety is one reason that why installment loans are preferred by more borrowers instead of payday loans. Though an installment loan offers valuable benefits such as improvement of credit score and flexibility of loan repayment, it makes a huge difference in terms of safety as well. So, why installment loans are safer than payday loans? Here’s the secret.
Installment loans offer increased sophistication in terms of repayment
Are you tired of balloon payments as far as your cash loans are considered? A number of borrowers go through similar issues. Unsecured loans help a borrower in overcoming such issues with more manageable payments by allowing the loans to be broken into smaller amounts. Clearly, this shows that it is safer to prefer them when compared to other loan types.
For instance, imagine a classic instance during which a person borrows $500 with a fee of $100. Let us compare the two repayment options available in detail.
- Payday loans require the borrower to pay a total of $600 by the next payday.
- Installment loans allow the loaned amount to be paid back in six equal terms by breaking it into 6*$100 or even in 10 equal terms by breaking into 10*$60.
Feel safer with installment loans as they are offered by qualified lenders
Do you experience stringent conditions and harsher terms from dubious lenders? Perhaps, you never come across such situations anymore at least in the case of an installment loan. Given below are some of the obvious reasons that explain you why.
- Each lender in the network is pre-screened.
- Credit ratings are assigned to lenders based on past activities.
- A panel comprising of loan experts is formed to review lenders.
Such precautions taken before the loan is offered will help any person seeking money on immediate basis or for strategic purposes.
No Credit Score, No Collateral Security, No Credit Profile – Installment loans for you:
Moneylenders offering installment loan never focus upon your credit profile involving ratings, history, score and other such parameters. Your credit worth is immaterial to the lenders as their focus is chiefly upon various other factors such as employment history, financial status and repayment capability.
Dedicated assistance offered to repay the installment loan at the earliest
Are you tensed as the payday loan you obtained could not be repaid on time? Forget about the imposing demands of your lender that might scare you after defaulting. By switching to installment loans, you will not only be able to feel safer but also work out a solution that helps you in repaying the loaned amount at the earliest. Perhaps, you never need to undergo any criminal charges as the installment loan lenders are always ready to offer their help.
Avoid the risks such as insecurity that pay day advances result in by focusing upon the above features in detail.