While the rise of online lending itself makes it more convenient for people to apply for financing, is this development a good thing for those who are already struggling? There are companies that charge very expensive annual percentage rates (APRs), which leaves many more people in trouble than they did when they started.
But it doesn’t have to be this way. Over the past few years, online lending has gained notoriety. The Internet leaves many people vulnerable to fraud, so you should always be careful when entering your financial information. The best way to make sure your information stays safe is to find a secure and reliable lending platform.
There is an unfair irony associated with lending today. Those with bad credit are often led to believe that they have no financial options if they have made mistakes in the past, making their situations seem more desperate than they actually are. This can lead to people making poor decisions and can lead to borrowing through unstable sources.
Meanwhile, any lender that accepts you with bad credit will charge exorbitant interest rates due to your history, making it difficult for you to meet your monthly repayment obligations – aggravating your situation. This is the trap that many people fall into, and it gives a bad name to online installment lenders.
However, this does not have to be the case. If you find yourself a reliable lending platform, you will be connected to a secure network of trustworthy lenders who can provide reasonable solutions to your borrowing needs. Many of these lenders will evaluate your application, even if your credit profile is not perfect or your income is below average.
Instead of (or in some cases, also) doing credit checks, these lenders will take other factors into account, including your income and working conditions, and how long you’ve lived at your current address. They may also ask for references they can contact that will ensure your character is personally identifiable.
Even those who receive benefits as a form of income will be able to apply, giving everyone a fair and carefully considered opportunity to borrow money. In these cases, applicants will not be accepted for insurances above what they can repay, and interest rates will be lower, which means there is a better chance of managing repayments.
If you have poor credit and need to borrow money, consider a personal installment insurance, but be sure to advertise the APR between 5.99% and 35.99%. There should also be a number of options in terms of flexible repayment, giving you the opportunity to pay off the money anywhere between six months and six years, depending on what you can pay each month.
Carefully considered small personal insurances can actually help you build a financial profile that makes you eligible for better future insurances. As long as the lender is responsible, and offers reasonable interest rates, online lending platforms can actually give people more opportunities than many other lenders in terms of improving their situation.
With this in mind, personal insurances can be beneficial for those hoping to improve their credit score, but only if both parties exercise some caution, and you only apply to borrow an amount that you can repay.