One of the most frustrating experiences in life is being short of money, without having an avenue to obtain some. However, this is often a reality faced by a lot of people, especially those people with poor credit histories. Banks and other financial institutions tend to prefer lending to those with good credit histories because they consider them reliable borrowers.
However, not everyone can have a good credit history throughout their entire life – a single emergency event, such as a layoff, which may lead to you being unable to make payments can tremendously impact your credit history. Even something as simple as not repaying your credit card debts on time can have an impact on your credit history in the long run. While a lot of people are releasing the importance of maintaining a good credit history, if you do not have a great history so far, there is no need to fret! With a company like slickcashloan, even with a poor credit history, you can obtain an instalment loan for bad credit easily.
What are the advantages of instalment loans for poor credit?
You may be wondering what the advantages of an instalment loan are, especially for those with poor credit. Here are some of the reasons why such loans are considered an ideal choice:
- You can repay the amounts without pressure: Instalment loans, as the name suggests allow you to repay the amounts that you have borrowed on an instalment basis. While you have access to the borrowed funds almost immediately, there is no pressure to repay the amounts in a chunk, because you can spread your repayment schedule over a period of time. Typically, most repayment schedules are either on a bi-weekly or monthly basis, making it easy for people to plan and meet their debt obligations without too much stress.
- Higher loan limits: Compared to an instant single-day loan or a payday loan, with an instalment loan, it is possible to borrow larger sums of money. Therefore, if you want more than about $1000, it is advisable to go in for an instalment basis loan rather than a payday loan.
- The application process is fast: Compared to other traditional avenues from where you can borrow money, the application process to obtain an instalment-based loan for those with poor credit is quicker and easier. You do not have to wait an extended period to receive your money, because the transmission of money post-completion of some basic formalities is pretty swift.
You can build your credit history with instalment-based loans
What a lot of people fail to understand is that if you have a poor credit history, one of the best and most ideal ways to rectify the poor credit history is by obtaining an instalment-based loan. This is because, by paying off the instalment-based loan on time, you can actually demonstrate that you are a reliable borrower, and improve your credit score tremendously. Therefore, these instalment-based loans are preferable to payday loans, because not only do they give you access to money, but also help you improve your credit score simultaneously.