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Do you have bad credit? If you have a FICO score of 600 or below, creditors will start to consider you higher risk. Don't fear though, you are not alone. According to Yahoo News, more than 108 million Americans have no credit or bad credit.
Having no credit or bad credit can make it more difficult to purchase things like a car or house or to get a loan to help with unexpected healthcare bills or appliance repairs. Or, if you do manage to secure a loan, you could be hit with above-average interest rates and harsher terms than those with good credit scores.
To get better terms on loans, you need good credit. However, oftentimes you may need to take out loans to get your credit score to increase. So how does one get out of this seemingly never-ending loop? One way that may help to raise your score is to use installment loans to rebuild credit.
Installment loans are a kind of loan that allows borrowers the opportunity to pay the loan back over time. Installment loans come in higher amounts and have longer terms. Many borrowers use installment loans to pay for life's necessities rather than using a credit card (a slippery slope that can lead to more/bad debt) or taking out a payday loan (which can have high-interest rates and short terms).
People choose online installment loans because their application process is simple and easy and often have fewer fees and expenses than some credit cards or payday loans.
Some customers prefer these types of loans because it allows them to take control of their loan in a way that makes sense for them. Plus, when you get an installment loan with Check `n Go, the application process is simple and often comes with fewer fees and expenses than credit cards.
If you're still asking yourself how and if installment loans build credit, keep reading to find out how the process works.
Often, the installment payments will be the same for everyone you owe, which means the amount you owe for each installment cycle won't change. This is good news for many people who rely on creating a budget to
manage their finances, as their monthly installment loan payment amount can be factored into a budget more dependably.
Installment loans work differently from loans that offer revolving credit, like a credit card or a line of credit. These types of financial loans are variable and depend on how much you use the line of credit offered to you. For every amount you spend on your line of credit, you'll be expected to pay it back in monthly increments, in the form of the minimum payment or more if you like, for however long it takes to pay it off or until you use more of your line of credit, indefinitely.
First off, understand that using installment loans as a possibility to rebuild credit may only help your credit if you make installment payments on time and with the agreed-upon payment amount. If you don't pay your installments on time or not at all, it may affect your credit score in a negative way. Using credit building installment loans may also help your credit score by adding a different kind of credit into your credit mix.
Here's more detail on the ins and outs of using installment loans to possibly rebuild credit.
Although taking out small installment loans to rebuild credit can help your credit score, keep in mind that as part of the application process, Check `n Go runs a credit check. There's no way to know if your credit score will keep you from getting approved for an installment loan. The only way to know is to apply. We offer the best installment loans that may build credit for people with bad credit and people with good credit. Customers with higher credit scores will qualify for higher loan amounts.
Once you've completed the application process and are approved, you'll learn which potentially credit building installment loan for bad credit will be the most affordable option for you.
Ready to see if you qualify for an installment loan to build credit - APPLY ONLINE!*