Non-traditional lenders, such as Maxlend Loans, are often viewed unfavorably due to very high interest rates and easy approval for installment loans. People with no credit or bad credit can apply for loans to get cash quickly. Many have difficulty making payments and end up with late payment fees or high penalties for partial payments. The result is paying back much more than was originally borrowed.
Clear Recommendations on Websites
Websites for experienced and responsible lenders include several recommendations to browsers on ways to avoid applying for installment loans. Some include working with a credit counseling company to reduce and pay off existing debt, trying to borrow the money from family, and having a credit card for use only in emergencies. Potential customers are urged not to borrow any more money than is absolutely necessary and to carefully read the agreement before signing.
Not every applicant is approved for an installment loan. Minimum qualifications have to be met regarding age and income. Applicants have to be employed and at least eighteen years of age. An active bank account is required and income levels have to be met.
A credit check is conducted, it is simply different than traditional lender processes. The difference is that major credit rating companies are not used. That means applying for, or taking out, a loan may not affect current ratings of applicants. Any issues with re-payment may also not be reflected on credit scores.
An installment loan is never the ideal solution to any situation. The reality is that it may be the only solution for certain people. Many utilize non-traditional lenders more than once. If a loan is successfully completed, another one will likely be approved if needed. No late or missed payments for the duration of the loan constitutes successful completion.
Customers in good standing can even enroll in a rewards program. Rewards include the possibility of borrowing higher amounts of money. Slightly lower interest rates and longer terms are also enjoyed by loyal customers. Those interested can get full details on the website. The program is a recent addition to make loans easier to manage.