Installment loans are the best alternative to credit cards. Today I will tell you why this financing option is better than a card. Do you need emergency cash? You’re not alone. Many Spaniards are in short-term financial crisis at one point or another.
For that reason from creditore we have created the buyer of personal loans in installments in which you can see the list of the best rated in Spain. And requesting an installment payment system is a good solution. Why should you request financing in installments? Financial emergencies are unavoidable and unable to get out of such situations is often annoying.
The rising price of goods along with financial stress breaks down a person’s confidence to cope with unforeseen expenses.
What are installment loans?
These are basically a kind of closed financing. Which means that there is a predetermined monthly payment system. Therefore, these are also popular as monthly installment loans with Affordable payments. The lender disburses the money from the one-time financing product and must be paid along with the interest in the same fixed installments. As agreed in the contract document of the same.
These are widely classified as secured loans and unsecured loans. The guaranteed implies the promise of your assets to guarantee the reimbursement of the financial product. They tend to have lower interest rates because the lender can recover the vehicle or claim your home. While one without a guarantee is independent of the guarantee, that is, that you do not leave any assets committed.
These tend to have higher interest rates, which reflects the greater risk for the lender. How to request a loan in installments at the best price?
Benefits of choosing online loans
When choosing a credit to pay off in the long term, you have a variety of benefits in comparison to a credit card and these are: And I think the more money you put in people’s hands, the more you’re going to spend. And if they do not spend it, they invest it. And investment is another way to create jobs. It puts money in mutual funds or other types of banks that can go out and make loans, and we have to do it.
• Unlike cards that are poorly structured, installment loans have a set deadline with start and end dates
• Compared to credit cards, these cash advances come with lower and fixed interest rates.
The interest rates of credit cards may vary if the financing limit is exceeded.
• The amount of this financing product is established and therefore there is no possibility of reckless spending.
In case you want more money, you have to reapply for money through a separate loan application. This challenge prevents you from falling into the trap of over-indebtedness. You have to keep in mind that in order to request one of the credits in installments you have to have good financial planning that protects you and your family.
• Payments are not only flexible but also predictable. They remain the same throughout the tenure, and therefore you know exactly how much to pay each month.
Whereas, card payments fluctuate depending on the balance.
• This small-term financing is not as detrimental to your credit score as a card with a high balance.
Because cards are a form of revolving credit, they are usually evaluated for the use of credit, which is the relationship between your balance and your financing limit.
This defines how you are responsible with your credit management.
Reasons to choose installment loans
Certain unforeseen situations such as medical emergencies require immediate attention and therefore cannot be postponed or avoided. And if you do not have a money-saving to cover the costs, it can affect you negatively. However, this instant installment financing product is the most reliable and practical solution to manage your financial emergency situations effectively. Here are some reasons to choose this type of financing:
Flexible amortization period
Unlike other financial products, it is not necessary to pay the loan amount at one time. The system of financing in installments offer the convenience of a fixed payment schedule, which you will pay on the exact due date, relieving the burden of paying in a single sum.
Help improve your credit score
The credit history of any loan has your direct influence, good or bad, on your credit score, since approximately 35% of your score is established in your credit history. Untimely payment of the financial product can negatively affect your credit score. Fortunately, there is an easy way to increase your score gradually. Paying your installment payments on time can have a positive impact on your credit score.
A stable credit history throughout the tenure of the loan is much more advantageous than paying the loan early. Everything you need to know to have a good credit history now and always. In addition, a healthy credit score can increase your chances of obtaining financing next time.
Some lenders do not perform credit checks
Traditional financing systems, such as banks and credit unions, perform a credit check. They instantly deactivate the financing request, in case of the unsatisfactory credit report from you. Most online lenders do not check credit, such as Gedescoche, this lender offers you up to € 10,000.
This feature makes these financial products more popular and easier to obtain. While demonstrating a stable income, many lenders will be happy to offer you a loan.
Mini-credits should ultimately be used only in very urgent situations. These loans come with higher interest rates and over time can lead to debt beyond your affordability to pay. Therefore, you get stuck in a debt cycle. You can avoid this financial product with the choice of installment loans.
If you pay the loan in installments opting for a short repayment term, you can save on interest. Also, as you are well informed about the amount of the loan due, it is easier to plan your budget accordingly and avoid paying so many interests with the mini-credits.
Rapid loan processing and transfer of funds
Financial installment products are readily available and convenient to apply online. The processing of the product is absolutely fast with the automated system and therefore there is not much documentation involved. It takes only a few minutes to fill out the application and get information about the loan approval status online. When your financial product is approved, the amount is immediately transferred to your agreed account. You can wait for your cash, usually on the next business day.
Should you ask for a loan just to build your credit history?
Generally, it is not advisable to take this financing system to improve credit, but there is an exception: Credit construction loans. As its name suggests, the construction of credit is its entire reason for existing. When you do not have credit or you have it light, this system of financing in installments can help you build your credit history. Once a credit builder loan is approved, the money is deposited into a savings account or certificate.
The money is not released until you have paid the loan. Paying on time helps you build your credit history, and you also have a nice emergency fund built for the time you pay the loan. But not paying on time damages your credit history, and too much debt could cause your budget to be forced and lead to lost payments.
How do personal loans affect debt consolidation?
Taking a personal loan to pay off high-interest credit card debt can help you once again improve your credit history. Debt consolidation, using a personal credit, moves credit card debt into an installment loan, which reduces your credit utilization rate. The use is the amount of your balance in relation to your limit. It is another important factor in your credit score.
Most experts recommend using less than 35 percent of the credit limit of each card, and if it is less good. Moving the debt into a personal installment loan can instantly reduce your use by card and total. As a secondary benefit, moving credit card balances to a personal loan with a lower annual percentage rate can help you get out of debt more quickly. Learn about the different types of credit cards in Spain.
What is an instant approval loan?
This online installment financing system is not just a financially secure option. But also a smarter alternative to mini-credits. It offers instant cash in times of crisis and allows you to pay in a flexible way in installments. Reducing the stress of paying the advance in a lump sum.
Get your product online right now, through the free loan comparison of our page. In it, you will see the different options of financial products, the lenders and their respective rates. The procedure to obtain your financial product is 100% online. You only need an Internet connection and a mobile device, tablet or computer. Come in and take a look…
What do financial experts recommend?
According to some financial advisors, these are the best alternatives to credit cards. They recognize that the first can be used to pay even credit cards, helping to save more money. In addition, when applied to financial products online, you can go to a comparative platform, such as the creditor. You will get the funds quickly.
The process is simple. The eligibility criteria are easy to meet, the approval rate is high, the borrowers with bad credit are also accepted, without guarantee requirements. The approval of the loan is instantaneous and the deposit of cash is made directly in your account. However, I suggest you weigh your choice carefully and understand the pros and cons of a smarter financing decision. Another aspect to take into account is to finance the commissions of your loan, you must study if this is profitable or not.
Do you need to apply for an online loan?
Creditore puts all your financial products at your disposal, so you can use them when you need them the most. There are certain circumstances in which we can not predict economic emergencies, having to go through a financial slump. In these situations, you can visit our loan comparison and choose the product that best suits you financially.
Requirements to request an online financial product
The requirements are practically similar depending on the lender, but in general, the basic ones are:
- Have ID
- Be a resident in Spain
- Be of legal age (18 years old) and under 65 years old (approximately)
- Have a bank account
- Have a mobile line to your name and email