Installment loans are unsecured loans, meaning you don’t have to put up anything for collateral. Much like California payday loans, you’re able to access quick cash and you’re probably going to be hit with a high interest rate. The good news is that installment loans will let you access higher amounts of cash and you can pay off the loan over a longer amount of time. Unlike California payday loans, bank loans often require a decent credit history. That is surprisingly not always the case with installment loans. Because of this reason alone, some people are under the impression that they are only for people with bad credit and not much better than payday loans, but that premise could not be further from the truth.
There are many reputable lenders offering installment loans in California, even to people with less than stellar credit. Many of these same lenders provide online payday loans California. As always, you will want to stay away from the dangerous ones, if at all possible. How can you tell who the questionable lenders are? Here are some signs to keep an eye out for. Avoid lenders who:
- Charge Application Fees: There is no reason you should have to pay to apply for a loan. This applies to California payday lenders and any other unsecured lender for that matter.
- Have Astronomical APRs: Again, installment loans do not have to be as bad as payday loans. But there are definitely predatory lenders with APRs in the triple digits. Stay far, far away from them.
- Advise or Require Insurance: These are expensive and do nothing to protect you, instead it protects only the lender. They add more to the cost of the loan that they would raise your APR high enough to be illegal in California. They also aren’t required to add the policy costs to your APR calculations, which is the only reason they can get away with it. Stay clear of these lenders.
- Push Renewals: Beware of lenders who try to lure you into deeper debt. In this situation a lender will attempt to make it difficult on the borrower to pay off the initial loan. You should only borrow what you can afford, and decent lenders are satisfied with that. Multiple renewals will only make you dependent on a loan that will cost you more and more as time goes on.
- Guarantee Loan without Your Information: If a lender promises your loan will be approved before they check your credit, employment or other qualifications, they are not trustworthy. Unfortunately, not everyone qualifies for installment loans.
- Offer Unsolicited Loans: Your best bet is to look for reputable lenders, not accept loans from people who make offers to everyone. There is a very good chance that the terms will not be nearly as favorable from companies who seek you out.
- Pile On the Pressure: Avoid at all costs any lender who pressures you to borrow more money than you absolutely need. This applies to a company who tries to get you to sign documents before you’ve had time to consider. Most California payday lenders and installment lenders have limits on the amount you can borrow. These limits are set by the state.
So, how can you find the good lenders, ones you can trust? Here are tips on how to find good California installment loans:
An installment loan can be an enormous help to anyone. Sometimes circumstances make it necessary to get through a cash flow crunch that could last years. In these situations this loan apparatus works often better than any of the alternatives many people have available. Whether you have good credit or bad, need money for a few months or up to 5 years, an installment loan could be just what you need. The trick is to get the most favorable terms for your particular circumstances. Needless to say, that means shopping around and comparing lenders. Here is what you need to consider when seeking out payday loans California and installment loans California:
- APR: The best lenders will have these clearly stated on their websites. However, you should be aware that these rates can vary according to credit score, and are often higher with online lenders.
- Fees: Compare all the costs of getting your loan and compare between lenders.
- Term Length: The shorter the better, but though longer loans cost more overall, their payments are lower. Installment loans will have longer payoff times. California payday loans will be shorter.
- Loan Amount: Every dollar you borrow adds to your APR, so try to borrow only the very least amount that you need.
Make sure you aren’t comparing apples to oranges, but are using the same loan amounts and term length. Consumers that have bad credit may want to apply with online companies that also provide payday loans as a fallback. Start with an application for installment loans and move on to a payday loan if that’s the only option. People with good credit will have other choices. These options include your standard bank loan and of course installment loans.