It can be extremely difficult to have financial troubles and seek lending because most lenders are not comfortable lending to people who have a poor credit history. Banks typically do not want to lend to those that they consider “risky” borrowers, and it can be quite embarrassing to ask your friends or relatives for money, leading to an extremely frustrating and desperate situation. However, there are multiple avenues for those who have a poor credit history to secure funding, with a little bit of research. One such extremely reliable method to secure funding in case you have a poor credit history is through a lender such as slickcashloan, which offers instalment-based loans, even to those who have bad credit.
What is a credit score?
Before jumping into the nuances of an instalment best loan, it is helpful to first understand what a credit history is and how it might impact your ability to secure financing, and also how it might affect your interest rates while borrowing money.
A credit score is a value that is assigned to a person, based on his or her creditworthiness, based on records of repayment. Simply put, it is an assessment of your ability to pay your debts back, and your ability to pay them back on time. A credit history, accordingly, is an aggregate of your credit score, over a period of time. Banks tend to prefer lending to those with good credit histories, rather than those with poor ones. It is for this reason that a lot of people who need financing are unable to secure loans from a bank because their credit histories are unreliable.
What are instalment loans? What are the advantages of these instalment-based loans?
Instalment loans, simply put, are those loans which you can get almost instantly, but repay on an instalment basis. The repayment schedules typically tend to be either monthly or once every few weeks, depending on the amount of money borrowed and the terms of the borrowing. The instalment amounts tend to be a percentage of the total borrowing, consisting of the principal and the interest. There are many advantages to obtaining an instalment-based loan, some of which are enumerated below:
- It is a good option for those with bad credit histories: As mentioned above, those were poor credit histories may find it extremely hard to secure a loan from banks or other traditional financial institutions. This is because these institutions prefer so-called “reliable” borrowers. However, if you approach your company with specifically provides instalment-based loans for bad credit, you can get a loan much more easily.
- The process is simple and fast: A lot of time, we may have investments but we may not be able to liquidate them fast enough to meet an emergency, such as a medical emergency. In this scenario, what a person needs is access to liquid cash. If you find yourself in this situation, instalment loans are ideal.
- You do not need to pledge any assets as collateral for the loan: While this typically varies from lender to lender, most instalment-based bad credit loans do not require you to pledge any assets as collateral.