Most people could use extra cash from time to time, but many common financial resources that are available to people with good credit scores may not be available to you right now. You may need extra cash to pay for holiday gifts, unexpected medical expenses or any number of other crucial matters. Some of the more common ways that people pay for these and other expenses is by charging up credit cards or applying for a bank loan. However, if you have bad credit scores, your credit cards may already be maxed out, and you may not qualify for a bank loan. A payday loan may be suitable for people who have bad credit scores, but these loans usually are very expensive with astronomical interest rates. The good news is that another option may be available in situations like this. You may be able to apply for a short-term installment loan through a private lender like Lift Credit.
Understanding the Benefits of an Installment Loan
Credit cards are notoriously difficult to pay off because of their revolving term. In the event that you still have credit available on a credit card, you understandably may be timid about adding to your existing balance because of how difficult it is to pay off revolving credit card accounts. An installment loan will have a predetermined number of payments, such as 24 payments for a 2-year loan. At the end of the 2-year period, the entire loan balance will be paid off. You can see that using bad credit loans that have an installment term is strategic, and some of these loan programs do not require a credit check. Be aware that installment loan programs without a credit score requirement may have a higher interest rate. In some cases, such as is the case with Lift Credit’s program, the interest rate declines over time as you continue to make timely payments.
Using an Installment Loan to Improve Your Financial Situation
While getting a short-term installment loan without a credit check requirement provides the clear benefit of getting much-needed cash in your hand, it also comes with another benefit. When you make monthly installment payments on time, you can re-establish a good credit history and work on boosting your credit scores. Some people may also use the installment loan funds to pay off bills that may be about to go to collections so that they can avoid a significant ding to their credit scores.
When you have bad credit scores and need extra cash, it is easy to feel as though you have no options. However, now that you know that some private lenders do offer installment loans without a credit check requirement, you may be able to focus your attention on the right financial sources to get the money that you need.
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