Consider an Installment Loan If Your Credit Score is Poor
February 8, 2019
When you end up having a bad credit score, the result is always the same. You become limited with your financial options, you can’t get loans or a credit card, and in some cases – you can’t even get a job.
The best solution is to, not tarnish your score with bad financial decisions. You can keep your score and possibly even increase it a little by:
- Putting portions of your paychecks into a separate savings account
- Create and keep maintaining an emergency fund
- Spend less than you make, and stop spending on things you don’t need
- Stop using credit cards or at least use them as long as you have money to back that spending
Naturally, this won’t have a significant impact on your score but will enable you to create better habits for the future.
However, if you want to get out of your debts and increase your score as soon as possible, the only thing that you can do is take out a loan – either a payday loan or an installment loan. Before we discuss the benefits of installment loans, let’s explain why you shouldn’t get a payday loan.
Why You Shouldn’t Get a Payday Loan
The best explanation for why payday loans are not a good solution when you have a terrible credit score lies in the fact that they are secured loans with immensely short repayment terms.
They are usually secured with an agreement between you and the lender that allows them to debit your account when the loan is due. The loan is generally due only a few weeks later when you need to repay the entire loan plus interest – which is usually very high.
With such terrible terms, payday loans get people in even more debt. We at Illinois Lending Corporation know how detrimental payday loans can be to our clients which is why we don’t offer them.
What we do offer are installment loans.
Why You Should Get an Installment Loan
Installment loans are in many ways similar to traditional personal loans, with higher interest loans that aren’t as hurtful as the ones in payday loans. The interest is also easily manageable as the repayment times are very long and give you enough time to pay off your loan in small installments, without significantly affecting your monthly budget.
That already makes installment loans much better than payday loans and the only real and beneficial solution for when you have bad credit. However, they also have much higher amounts than payday loans. There’s no point in taking out a high-interest loan on such tiny amounts as with payday loans; it’s much better to get a larger amount that will enable you to pay off the debts you have and increase your score.We want to enable you to get out of the problems you have with conventional installment loans which you can pay off in smaller amounts and without ridiculously high-interest rates. Take a look at what we offer and get a loan with only a few clicks!