Installment loans can be an effective buffer for the hard times. These days we are facing such times since the economy has buckled under the pressure. If people aren’t losing jobs, they are just getting enough to get by. Unfortunately they don’t have anything left when emergencies come up. It’s hard when there’s no money left to pay the bills when it had been spent on vital medication. It’s hard when you can’t go to work on time because your car broke down. Worst of all, you can’t ever predict when these instances would ever occur. These are precisely the times when anyone would need extra cash.
First of all an installment loan is just a way of borrowing money that will be paid back over a predetermined number of payments, typically these payments are monthly, but it can be any amount really. So say borrow $10,000 for a car. If you borrow for 36 months, each monthly payment will be the same and the total will be paid (plus interest) after 36 payments, in 36 months. If you get a loan for 60 months, all payments will be the same (but less) and you will pay back the total in 60 months.
Just because a cash advance is an easy money opportunity for someone without a credit history, it doesn’t make it a good idea. The third party money needs to have a positive mark on your credit history in order to have it help build the score. A cash advance has no record of the loan transaction unless it is defaulted upon and ends up on the desk of a collections agency. As soon as the collector reports the bad debt to the credit bureaus, it will take seven years to have it removed. There is nothing a cash advance can do to help build credit for a young adult unless it is being used to prevent other bad marks from showing up on a person’s credit history.
Should you happen to be turned down by a traditional lender, you still have recourse. Because of these recessionary times, many people have taken a credit rating hit. Still, folks with bad credit do need loans occasionally. Private lenders have stepped up to the plate and are willing to offer bad credit small loans bessemer al where credit histories are not a consideration. In fact, the competition in this market is pretty fierce and you may be able to actually shop for decent interest rates and reasonable repayment terms.
Personal loans offer the most convenient way of raising money. You can take out a personal loan for any purpose. If you want to buy a car and you do not have sufficient money for this, you can take out a personal loan for it. A personal loan can be used to buy a new or an old car.
Most traditional lenders, and other lenders, offer two types of loans, secured and unsecured. Unsecured loans are called personal loans or signature loans. Secured loans are those in which you offer valuable property as security to back up the loan. Secured loans are usually called home equity loans, line of credit on equity loans, and other similar epithets.
Secured and unsecured, these are the two varieties of bad credit installment loans usually available. A secured loan requires the offering of valuable property – real estate, stocks and bonds, even a late model car – to offer as collateral. Your rates may be lower for a secured loan because the lender has the security of knowing that if you default, they can seize the property and sell it to cover the loan. Without this security, interest rates are often much higher.
There are many lenders available on the internet. So you can borrow money from any one that suits your profile. You can ask for their quotes and can make a comparison to find the best one available for the loan.