When people with poor credit or no credit try to think of a place where they could borrow money quickly, two options typically come to mind: auto title loan lenders and payday lenders. They may not realize an alternative exists for individuals with a regular income that can be verified. Companies such as MaxLend Loans offer the opportunity to obtain money and pay it back in numerous affordable installments instead of having to pay the entire amount due with the next paycheck.
Statistics on the payday lending industry have shown that many borrowers cannot afford these loans because they cannot pay the amount due within such a short time. They have a tendency to roll over the loan into a new one and start the process all over again. If this particular company does not allow this or only allows it to be done a certain number of times, the person now heads to a different payday lender for cash. Sometimes the borrower winds up having two or three payday loans open at one time.
Installment loans prevent much of the problem because the principal and interest is paid back through several scheduled payments. It’s important for the borrower to understand that the interest rates are high, just as they are with payday loans. The lending company protects itself with these rates, since this is a somewhat unconventional form of borrowing. The companies don’t do credit checks, so getting the loans is relatively easy. The customer will need to provide proof of income, but does not have to provide any collateral like a vehicle title. Collateral loans also are available at pawn shops, but not everyone has something worth a few hundred dollars to offer as collateral.
To avoid paying a large amount of interest, the borrower should make a plan on how to return the money due as quickly as possible. This might require taking on a temporary part-time job for a month or two in addition to the current job, or cutting back significantly on unnecessary expenses. Selling some possessions on eBay or Craigslist, or holding a yard sale, are additional options for getting that loan paid back in an impressive time frame.