The Benefits Installment Loans Present
We asked 300 people to vote for the most important trait in a short term personal loan and nearly 93 percent of respondents voted for “safety” as being at the very top of their “personal preference” list. We concur. Safety is indisputably the most important thing to look out for in a short term loan and that is exactly why we are going to discuss today.
Before we get into the top four reasons why installment lending are safer, we wanted to share an interesting “dig” with you. According to Wikipedia, the US Department of Defense has exempted these long term loans from legislation designed to prohibit predatory lending.
That would be huge. Considering the fact, that predatory lending is one of the prime concerns for the safety of borrowers, installment financing certainly appear to be a promising alternative to traditional payday loans and cash advance programs.
Here Are The Top Four Reasons Why An Installment Loan Is Safe:
1. The Quality Of Lenders
Since we started offering personal loans to both individuals and borrowers, we have been consistent with one criteria: every member of our lender network is pre-screened, rated, and reviewed by our internal panel of loan experts. Installment lending are no exception to this practice and we have carefully pre-screened, sorted, and rated nearly 350 additional lenders that focus on installment financing, exclusively.
Knowing that you will be working with lenders who are qualified and compliant can be a significant sigh of relief for the first time borrower.
2. The Overall Package And Terms
If you are the kind of person who enjoys reading legalese, please compare the fine print offered for installment lending and other short term loan programs. If you go through the terms clause by clause, installment loans will emerge the clear winner, primarily due to the fact that the overall bundle of terms tend to be more “borrower friendly” — and we love that.
3. No Credit Jargon
The most important reason why these are safer is the fact that in order to qualify for the loan, lenders do not emphasize on credit worthiness. In fact, most lenders do not focus on your credit profile at all. Instead, they look at the overall picture and review your financial standing and employment history as precursors demonstrating your ability to repay the loan. So, the clear check of credit criteria makes it one of the most important reasons from a safety perspective.
4. Repayment Terms Tend To Be Longer
Apart from the above, the key is that long term loans can be repaid during a term that tends to be longer than your next paycheck.
So, what’s the downside, we hear you ask? Not much, but you do need to be aware that interest rates do tend to be slightly higher, primarily due to the risk assumed by the lender. There is a solution for that as well. We have partnered with numerous lenders who specialize in providing installment financing so you can compare quotes from multiple lenders before your make your pick.
This ability to comparison shop is more empowering for the borrower and the overall results tend to be better from a consumer’s perspective.
Find the Answer to Your Question
Why is it called an “installment” loan?
Why is this better than the traditional payday loan?
Can I get a bigger loan with installment loans?
Do I have to be a certain age to get a loan?
Do I pay a fee for submitting an application?
What happens if I pay late?
Can I qualify for a loan if I am not a U.S. citizen?