A payday loan needs to be avoided at all costs. It is the most expensive loan available from non-traditional lenders. The interest rate is exorbitant, and the balance has to be paid in full in one lump sum. For some people, it is the first step in a vicious cycle of overwhelming debt.
Failure to pay on time and in full results in high penalties being added to the original principal and the accumulated interest rates. There are other alternatives to get fast cash with minimum requirements. Many non-traditional lenders, such as Blue Trust Loans, offer installment loans instead of payday loans
An installment loan will still have high interest rates, but they will be slightly lower than payday loans. Payment terms are longer to be more affordable. Most installment loans can be paid over a six month time period. Payments are set up to match the frequency of paychecks received by the client. A person who is paid every week, for example, will have twenty-four equal payments.
Installment loans are just as easy to get, and money can be available the next business day once approval is granted. It is not an ideal solution, but it is easier to manage than paying one lump sum out of one paycheck.
Installment loans are easier to get than traditional loans; however, there are minimum requirements that have to be met. High approval rates do not imply guaranteed approval for everyone who applies. Applicants have to be US citizens of at least eighteen years of age.
A verifiable income is also required. That can be from a steady job, a pension, social security, or disability. It does have to reach a certain level to qualify people for a loan. An active checking account is also needed for automatic payments.
Those ineligible include people from some states, active military personnel and their families, and those involved in a bankruptcy case. People with a history of non-payment of debts may be denied a loan. Consider all the options and costs of non-traditional loans before signing a loan agreement. It is wise to utilize loans for emergencies only, and only borrow as much money as you need.