One major misconception that’s floating around is that installment loans are only for those with bad credit. This isn’t true at all. Installment loans are personal loans and anyone can apply.
The bad rap comes from many payday loan companies who have tacked on “installment” to their products.
The truth about installment loans is you’re not promised approval for an installment loan. Lenders still have to determine the following:
- Your credit score
- And, additional debt.
Conditions are often more favorable if you have good credit because you can likely secure better repayment terms and lower interest rates.
Instead of payday installment loans, choose long term installment loans to get the cash you need. You can get more money under payback terms that you most likely can handle. The time frame for payback ranges from 24–60 months and the APRs are often less than traditional payday loans.