Many people look into getting an instalment loan as a payday loan alternative, and there are many benefits to this type of loan. Hundreds of people take advantage of these loans every year, and while they work differently from payday loans, there are still lots of things which are the same.
Choose your preferred length of time
Payday loans are intended as short-term loans, which is why they are usually paid back after no longer than a month and on the next payday. However, instalment loans can be borrowed for much longer, which makes them a better alternative for people who want to start a business, buy a car or do something over the long term. From a month to ten years, you can choose exactly how much you want to borrow and over what length of time you wish to pay it back.
You can get more flexibility
Since you have the option of paying back your loan in instalment, you don’t have to worry too much about hurrying to pay the money back after your next payday. With many instalment loan plans, you are able to pay back the money bit by bit and the same amount each month. This makes it easy to know exactly where you stand with your finances, and there won’t be any unexpected fees out of the blue coming your way.
You will often be rewarded
Many companies offer great schemes to those who wish to take out instalment loans. While payday loan companies loan the money and then get it back after a few weeks, you will be involved in the company for a lot longer with many instalment loans. If you make regular repayments on time and there are never any problems, you may find yourself being rewarded in the future. That’s just one of the reasons why it’s definitely a good idea to stay on the right side of loan companies!
Improve your credit score
As with any loan, if you pay it back on time and there are no problems or complications, you will discover that your credit rating will increase. This is ideal if you’re trying to boost your credit score after a poor financial period, or simply if you want to get off to a good start and get your rating higher and higher to get a mortgage or particular credit card in the future.