Loans have become an essential component of life for tens of millions of Americans. In a world where utilities and basic essentials consume household income with little money left for anything else, a little help here and there goes a long way. With this in mind, the lending sector has come up with a number of options geared toward those in need of financial assistance. Each offers its own benefits, but one person’s benefits may be another’s drawbacks.
Banks and credit unions offer a variety of loan options. They’re available in a wide range of amounts, most of which fall on the higher end of the spectrum. While longstanding members of credit unions and bank account-holders are often eligible for these loans, outsiders typically aren’t welcome. Those with less-than-perfect credit scores need not apply no matter how badly they may need financial backing.
At the same time, bank loans can take time. Those who apply often have to wait several days or weeks before being deemed eligible much less receiving much-needed funds. Though interest rates are typically lower through this route, limited availability and tense waiting periods have a way of offsetting the benefits.
Payday loans are available to a wider range of people with credit scores not being quite as important as they are with traditional loans. They also typically make their way to borrowers’ bank accounts in a matter of hours rather than weeks, so speed is a definite advantage. That being said, interest rates are extremely high, and payback periods are very low. For some, this creates greater hardship in the aftermath of it all.
Payday Loan Alternatives
In recent years, a new option has made its way into the lending realm. Short-term installment loans like those available via Maxlend Loans provide borrowers a sort of middle ground between the two typical sides of the borrowing world. They’re offered in slightly larger amounts than some payday loans but lower than those from banks and credit unions. In spite of it all, payback terms are longer than those of payday loans, so installments tend to be smaller.
Borrowing options were once limited despite the widespread needs of the working public. Today, the gap has been bridged with additional alternatives. Short-term installment loans provide benefits where other options, and America’s typical household income, fall short.