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Direct Lenders Installment Loans For Poor Credit
If you are burdened with a poor credit rating, don’t despair, because you are far from alone and there are ways that you can rebuild your credit and there are ways that you can still borrow money from direct lenders too.
It wasn’t so long ago that lenders where virtually giving money away and it was irresponsible lending that lead to many people becoming overburdened with debt, so if you do have a poor credit rating today, you are just one of the many people who have exactly the same problem.
Poor credit can cause a number of difficulties, not least of which is the inability to borrow money at reasonable rates, if you can borrow money at all. That leads to a lot of people turning to payday loans as a source of finance in a crisis, but payday loans are notoriously expensive and they can lead to a dangerous debt cycle that can spiral out of control. On the other hand, the big banks and financial institutions are not too keen to lend money to people with poor credit and the application process for a loan from a bank can be a long-winded and drawn-out process.
That leaves people with poor credit scores in a catch 22 situation. Not only do they find it hard to borrow money in an emergency, but by not borrowing money at all, they are making the process of rebuilding their credit slower, because borrowing and repaying a loan on time improves a person’s credit rating.
If you are in the situation of having poor credit and you have found it difficult to borrow money, you might be surprised to learn that there is a much better way to raise to raise cash in an emergency than a payday loan, and that way is through a direct lender installment loan.
What is a Direct Lender Installment Loan?
Unlike a payday loan, which you have to pay back in one repayment, a direct lender installment loan is a loan that you pay back over a period of time in a number of equal repayments. When you take out an installment loan, any charges and the interest are added to the principle amount of the loan and your regular repayments will have paid the full amount of the loan by the end of the loan period.
Why are Direct Lender Installment Loans better than Payday Loans?
Direct lender installment loans are much easier to manage than payday loans and they are usually a lot cheaper too. With a payday loan, you have to repay the full amount of the loan, plus interest and charges, with your next paycheck. That makes a payday loan a very short-term solution to a cash crisis and it often leaves people short of cash again come the following payday, so they either roll over their payday loan or they take out another one, which is when payday loans start to become extremely expensive.
An installment loan, on the other hand, allows you to repay the loan in regular, manageable repayments, so it is more affordable and, because the repayment amounts are smaller, you are less likely to face a new cash crisis immediately following the first one.
Can I apply for a direct lender installment loan if I have poor credit?
Generally, direct lenders are far more interested in your current financial situation than they are your financial past, so poor credit, bankruptcy and bad checks are not usually a barrier to applying for a direct lender loan. The basic requirements to qualify for a direct lender installment loan are that you must be a US citizen, have a checking account, and you will need to be able to demonstrate that you have a regular income.
What can I use a direct lender installment loan for?
There are usually no restrictions at all on what you can use the money from an installment loan for. You could use the money for an emergency expense, such as medical costs or home repairs, or you could use it to buy a car or to take a vacation. A lot of people use installment loans to consolidate debt, for example; to pay off a number of credit cards to get one, more manageable, monthly repayment.
Where can apply for a direct lender installment loan?
The best way to find a direct lender that may be willing to grant you an installment loan is to apply through an online loan matching service. Online loan matching websites work with a network of lenders, so you will get more choice and you will probably get a better deal. You simply have to enter into an online form some basic details about yourself. Then, your details will be matched with potential lenders. If a match is found, you will be presented with a loan offer, and you will be given ample opportunity to either accept the offer, or decline it.
If you do find yourself in need of cash and you have poor credit, a direct lender installment loan will often be cheaper than a payday loan and it is a lot easier to manage. Taking out an installment loan and repaying it on time could also help to rebuild your credit too.