Companies like Maxlend Loans offer alternatives to payday loans. When people who need emergency cash don’t have access to other forms of credit, they can take out an installment loan if they qualify. After applying online, the person typically receives the money in his or her checking account the next day unless the application is not approved.
Understanding Finance Charges
Customers must understand that interest rates are high with these loans, just as they are with payday loans. Although the installment arrangement doesn’t require paying the entire loan off at the next payday, it’s still best to pay the entire principal off as soon as possible. The higher interest rates are intended to protect lending companies because they are offering the services to high-risk borrowers with a greater-than-average likelihood of defaulting.
People considering applying for a loan may encounter some negative reviews of companies that provide installment loans. Much of the dissatisfaction expressed, however, is about the interest rates and the amount of money that will be paid after all installments are complete. The companies do not hide this information, so borrowers must be responsible enough to read the details on the websites.
Borrowers can view a full schedule showing how much they will pay with each installment and how much will have been paid in total at the end. Even if they can’t locate the precise interest rate in the contract details, the payment schedule is straightforward. Prepayment usually does not lead to any penalty fees; the applicant will want to make sure of this beforehand.
Rejections and Counteroffers
Another issue that upsets applicants is being rejected or being approved for a lower amount of money than was originally suggested. Although installment loan companies approve the majority of applicants, not everyone qualifies. The company may do a soft credit check that does not impact the person’s credit rating, but does turn up such serious problems with credit that the risk is too high. Not all companies check credit, though. In addition, if the person does not have enough income to make the payments, a loan will not be provided or a smaller amount may be offered.