When 56% of Americans have less than perfect credit and 64% of the county can’t afford an unexpected life event, living without the assistance of short-term loans is nearly impossible. According to the National Foundation for Credit Counselling (NFCC), more than half of the workforce would be completely out of pocket if an expense as low as $1,000 broadsided them. Such statistics is why so many American consumers are turning to installment loans to help finance their emergency needs.
Personal Loans with Bad Credit
Many Americans do not seek assistance from financial institutions during crises because of poor credit. Most banks require excellent credit along with stable income for loan approval, and even then acceptance may be on a conditional basis. Some lenders look at a borrower’s debt-to-income ratio before granting financing and require the applicant to present additional paperwork to prove stability. Some institutions even use collateral such as real estate property as security in the instance of default.
Flex-pay loans are different in the sense that they give borrowers a second chance. Lenders are not like traditional banks in that they place more emphasis on job stability than on what is on their credit report. In order to apply for , one must only be an American citizen (or permanent resident) over the age of majority with a valid email address, bank account, and income. While they do not improve FICO scores, loans for bad credit give individuals the money they need so that they can focus on other things in life.
What Makes Flex-pay Loans Great
Unlike payday loans, which have short terms and are due in full at the time of the next pay day (typically two weeks after borrowing), flex-pay loans aren’t repaid in one lump sum. Individuals can be approved up to $1,000 and pay back the amount over which usually encompassesseveral pay periods. The interest that accrues on installment loans is usually cheaper than what borrowers are assessed in payday loan fees.
Things to Remember
Flexible loans for bad credit are meant to solve short-term problems. They aren’t intended to rectify long-term problems that need the help of a financial counselor. Their terms and rates should be evaluated closely to ensure repayment won’t put the borrower’s current finances at risk.
Even with bad credit and , Americans have an opportunity to protect themselves from financial insecurity. They need only search out a lender that provides a flexible lending option. When provided by the right lender, an installment loan can provide reasonable and responsible assistance when an unexpected expense tests their financial capabilities.