What You Should Know About Bad Credit Installment Loans in New York
Getting a loan when you have bad credit can be rather difficult. Lenders don’t want to take the risk of not getting their money back. Even when they do lend, the money will come with a high rate of interest. What should you do if you are having trouble getting a loan? Are bad credit installment loans in New York right for you?
Installment Loans Offer You A Chance To Improve Your Credit
The best thing about an installment loan is that it gives you a chance to establish a payment history. Making your payments on time will result in an increase to your credit score. A good idea is to automatically have your payment taken out of your bank account on the same day each month. You may even be able to deduct this amount from your paycheck before you even have the urge to spend it.
You Have More Time To Pay Off Your Loan
Another benefit to bad credit installment loans in New York is the time given for repayment. A payday loan requires payment in a maximum of 30 days. Installment loans can be paid off over the course of 12-18 months. Some lenders allow even longer repayment plans. This gives you a chance to stabilize your financial situation while you pay of the loan. You are less likely to become trapped in a bad credit loan this way.
Collateral Can Lower Your Interest Rate
Just because you have bad credit doesn’t mean won’t have any collateral. Offering your car or home as collateral greatly increases your chances of getting a decent interest rate. You could end up paying less than 10 percent interest depending on the loan and lender. However, you can also apply for an unsecured loan if you don’t want to risk losing your car or house. You have flexibility when applying for bad credit installment loans in New York.
Larger Loans Are Available To You
The typical payday loan is going to be for no more than $1,500. The average amount per loan is around $300. How is a $300 loan going to help you pay off a major debt? bad credit installment loans in New York will offer you as much as $25,000 to pay off outstanding bills. It can be a good way to consolidate your debt if you have bad credit. Going with the installment loan is the better option when you need money for something other than your electric bill.
No Credit Check Is Usually Required
The good news is that you generally don’t need a credit check to get your loan approved. However, short-term lending may take into account your credit worthiness based in part on information obtained from your credit report. This makes getting your loan much easier for you. Some loans won’t even require proof of employment for approval. You should never take out a loan without some sort of income.
Taking out an installment loan can improve your credit score if paid back in a timely manner. Use this to your advantage. Larger loan amounts, sometimes with no required credit check and lower interest rates with no collateral can make this an attractive option for you.