Having bad credit may be a real obstacle in the way to financial freedom. Even with good credit history, it may be difficult to get approval for larger loan amounts needed to finance a new car or house purchase.
Having bad credit may be a real obstacle in the way to financial freedom. Even with good credit history, it may be difficult to get approval for larger loan amounts needed to finance a new car or house purchase. Most people, who shop for an installment loan online, look for lenders that do not require any credit checks or lengthy paperwork. Lenders like 100DayLoans -
http://100DayLoans.us.com can provide unsecured loans for up to $2,500 that can be repaid over 90 to 120 days and even longer periods. But there is a catch - high interest rates. In case of bad credit, fewer lenders will consider your application. At the same time, applying for a loan with a 90 or 100 day repayment plan, might not be such a bad idea. But you will definitely need to budget your expenses accordingly.
Here is a breakdown of the loan terms for a hypothetical Illinois resident where high risk installment loans are sanctioned by the state laws. (Notice: individual state laws regulate loan terms and installment loans may be unavailable in your particular state).
A $2100 loan for bad credit will result in a total finance charge of
$2403 to be repaid in monthly payments of
$409.40.
In contrast, a
$1000 loan will costs her
$900 with
$174 in 11 bi-weekly payments over a 7 month period - even longer than 100 days.
The basic logic here is the less you borrow, the less and faster you pay your loan back.
Budgeting Tips
From the above example, it is clear that good budgeting will keep one out of trouble and a payday debt trap that many Americans have experienced first hand! And it is not that hard to budget. If you have bad credit, and need a loan, first thing you need to realize is that sky high interest rates that your credit profile requires should prevent you from borrowing thousands of dollars and spend this money on inessentials. A broken car repair is an essential expenditure. A cell phone bill or a child's new winter clothes can also fall in that category. Try to keep your loan amount to the minimum in order to keep your borrowing costs down.
In most cases, you can qualify for up to $1,500 in funds if your checking account is in good standing. And the best part is that you won't need to pay it back in two weeks: you can opt for a long-term loan and pay it off in several small installment payments. Nowadays, there are companies with massive online lender networks that specialize in installment payday loans.
Applying for a Loan Online
Online loans are the easiest and most convenient type of funding. They are deposited directly into your bank account and do not require any supporting documents. Most online lenders are set at the Money Overnight method, so you can expect to receive your funds on the next business day as long as you apply before 4 p.m., EST. The funds are usually wired via direct deposit to your checking or savings account.
