The credit consumer financial market perpetually harvests popularity as manifested by small installment loans. The lending and borrowing culture is based on a mutual agreement guided by legitimate terms and conditions presented by lenders, hence this has promoted a cash installment loan culture as a quick solution to a huge community of borrowers.
What do we mean by cash installment loan?
The origin of installment loans came about through a need for urgent financial needs. An installment loan is easily accessible in less than five minutes since the application procedure does not take long and these cash installment loans are for a short-term goal. The financial culture of borrowing normally acts as a quick form of solution for those in an urgent financial crisis. That financial urgency always demands for a small denomination of money, and mutually agreed upon payment schedules are made among two parties involved in the transaction.
A huge community of loan seekers embraces the availability of cash installment loans. The daily growth of installment loans and the credit consumer market ensure the steady expanding due to the huge consumer demand.
Why apply for loan installment ?
The application of an installment loan offers the following financial benefits to the beneficiaries of the loan applicants:
- Affordable fixed interest rate; the interest rate depends on the amount borrowed since the rule is, “the higher you go, the smaller it becomes!”
- The interest rate vs. timeline is favorably considered; the amount payable by the borrower is worked out within a favorable time frame to consider the status of the borrower.
- Easily accessible, so installment loans are reliable; more formal financial institutions will need to ensure you have good credit history before loaning you any amount of money.
- An installment loan saves you a lot of time because you don’t have to go through a typical “approval time” like at a typical bank.
- No penalties on late payments; an installment loan does not penalize you for a late payment, hence a majority of people still prefer cash installment loans rather than a traditional loan from a bank.
Reasons Not to Apply for Installment Loans
The application of this mode of borrowing is convenient, but it is also detrimental when the following financial measures are re-evaluated:
- Unfavorable interest rate charges; the interest rates are usually high depending on the urgency of the loan. The lenders take advantage of your financial vulnerability, and therefore, fix interest rates, which are in their best interests, not yours.
- It does not abide by a structured guide of credit rules, so it is not formal. The application is transacted under some professional business ethics to avoid dubious business methods, which cannot be accommodated by the law.
- Unclear terms and conditions; the lenders of installment loans do not always clarify the terms & conditions to their clients clearly, so sometimes it is too late by the time you have found out what they are.
Financial institutions are facing stiff competition from informal credit consumer investors. The nature of borrowing and lending has been transforming into a phase where customers opt for shortcut routes just to get their situation sorted out as quickly as possible.
Installment loans act as your rescue team when you get turned down by your banking institution over your bad credit history. The strict scrutiny of formal financial institutions causes more frustration to borrowers than an aid since they bar them from accessing financial loans due to their unprofitable credit history.
How installment loans promote financial salvation
They say desperate times call for desperate measures; after all, your bank only cares about your funds, not your well-being and trust. So, this quick loan procedure makes you embrace cash installment loans. Not being approved for loans by financial institutions because of your credit history makes the cash installment loans a sweet deal one cannot refuse, but remember, when a deal is too sweet to say no to, it is always a good idea to think it as thoroughly as possible.
Featured Image Source: Thinkstock/utah778Posted on October 21, 2016