Installment loans are emergency funding options that came as a better alternative to the highly restricted payday loans. Because of their very short term and high interest rates, payday advances put a lot of people in debt traps. Lenders like CashUSAToday understood the pain of the borrowers and started financing online installment loans for bad credit which have less bad impact on the credit score. People were also able get higher amounts of cash with flex pay loans. Needless to say, payday loans used to give very low cash amounts which were never adequate to solve a financial crunch.
The reason why installment loans are less impactful towards your credit rating is because the repayment terms are extended. Apart from that, as opposed to the payday loans, here you do not pay a lump sum. Rather, you repay the debt in multiple small installments. Since you will qualify for an amount based on your present income status, the small payments would never put you in pressure. If you make the payments sincerely, then you wouldn’t have to worry about your credit score.
Long Term Use of Short Term Loans is Not Wise
It is true that installment loans are less harmful towards your credit compared to payday loans. However, in the end, it comes down to sincere repayment of debts. No matter how easy it is to keep up with the repayments, it also depends on your sincerely towards getting debt-free. If you fail to make a payment, then definitely it will have a negative impact on your credit status. Repeating the same would hurt your credit Score health in the long term.
Therefore, it is always advised not to use short term loans on a long term basis. That is because of the chances of late payment increases. However, if you have a stable income and you are a sincere borrower, then without any fear apply for an online installment loan, we will offer low rates!