We all endure financial hardship. And almost half of all Americans can’t afford a financial emergency. 44% of Americans can’t cover an emergency expense of $400.
But if you don’t have enough cash to afford an emergency, you still have options.
In this situation, many people take out a credit card. But there are times it makes more sense to take out a personal loan. With the prevalence of online lending, you can quickly receive your funds and have a flexible payback period.
If you’re considering applying for long-term installment loans, here are 5 reasons why it’s the best idea.
1. Help Improve Your Credit
Surprisingly, installment loans can help improve your credit while supplying you with the funds you need. Making your payments on time and in full can help boost your credit score.
Lenders can help create a convenient repayment schedule so you can make your payments in full.
Installment loans also help diversify your credit. The multiple sources of credit will help improve your score, looking positive on your credit report.
2. Need the Loan to Finance a Project
You don’t have to use a personal loan for an emergency. You can use a loan to finance a project that you don’t have the money for.
Loans are better for this purpose than a credit card — many credit cards won’t provide a high enough credit line to cover the costs. You’ll also get your loan quickly and will immediately receive access to the cash.
3. You Need to Pay Off Credit Card Debt
77% of Americans are in credit card debt and the average debt amount is $5,331. If you’re struggling to pay off this debt, an installment loan can help pay it off.
Unpaid credit card debt will lead to increasing interest rates, meaning you’ll have to owe more in the future. A loan will help pay off the credit card debt immediately.
Depending on your credit score, your installment loan interest rate can be as low as 6.95%. When you repay the loan, you don’t have to worry about paying off only interest.
4. Need to Pay for an Emergency
As mentioned before, many Americans can’t afford an emergency expense.
Installment loans are high enough to help cover for a myriad of emergency expenses.
In addition, an installment loan can help in an emergency. Take a loan out and keep it as an emergency fund. You don’t have to use up the cash immediately and it’s there when you need it.
Are You Looking for Long-Term Installment Loans?
Now that you know a few reasons to take long-term installment loans, it’s time to start shopping for an online loan. First, you need to find the most reliable lender.
The best lender will supply you with the loan amount you need while creating a repayment schedule that works with your current financial situation.
We at Bonsai Finance offer installment loans between $100 and $5,000. You receive your money fast, we have a convenient repayment schedule, and simple approval requirements. Here are some other articles you might find helpful:
Online installment loans instant approval – how it all works
Direct lenders for bad credit installment loans
4 installment loan benefits no one told you about
Installment loan vs payday loans what’s the difference?