The main advantage of installment loans is quick and immediate financial assistance for clients applying for it. This group may include people already in debt or those who do not have a stable source of income or a positive credit history. The path to take out loans from the bank is closed, but not all is lost – they can use the services of non-bank companies. Most of them are not interested in exploring the financial situation of the borrower – for them the effect, i.e. timely debt repayment, counts. We invite you to read about the benefits of installment loans, their costs and whether payday loans for those in debt are definitely a good idea.
What are installment loans?
If you want to apply for an installment loan from a bank, you must be aware that our financial situation will be thoroughly analyzed. It is more profitable for the bank to refuse a potential client than to urge him to settle his debt for long months. So, if we do not have a stable source of income (high enough to pay back the loan), and our credit history leaves much to be desired, we have no chance that the bank will consider the application we have positively reviewed.
In this situation, it is best to immediately start learning the offer of companies offering non-bank financial support. What are the benefits of online installment loans? When applying for a non-bank long-term commitment, we can expect primarily reduced requirements for the applicant and reduced formalities to a minimum. You can also find companies that give up checking their clients in the National Register of Debtors. As a result, people with financial problems have a chance to receive financial support. However, remember to read the information on the lenders website and compare products so as not to make a mistake.
Below is a list of installment loans, which according to our specialists are among the best. Detailed information on offers and the possibility of applying can be found by clicking “Submit Application”.
Advantages and disadvantages of installment loans – several payday loans at the same time
Is a second loan in the same company possible? Applying for another commitment at the same institution, if you haven’t repaid your previous loan, is out of the question. On-site companies, as security, will reject this request. However, nothing prevents us from directing it, for example, to competition.
Of course, we have to think at this moment whether we really have no other option, because paying off one debt with another can very quickly increase the scale of our problems. Here is the answer to the question why parabank companies willingly grant installment loans to indebted people – because they can earn the most on them. If we have such an opportunity, let’s consider whether a mortgage loan (also granted by banks) would not be a better solution.
Is there an offer for those in debt?
Installment loans for those in debt are sometimes the only option to pay off their most urgent liabilities before the debt collection process begins. Let us specify here who the person in debt is. According to official definitions, someone who has a loan or a loan from a bank or loan company. In the context of this article, however, it is about those borrowers who have problems with timely payment of receivables, their credit history is at least poor, or their property has already begun to be taken by a court bailiff. Installment loans without BIK, i.e. payday loans, are the surest option to receive the cash you need. Its advantage is the relatively low amounts that the borrower can apply for, which minimizes the risk of incurring another debt that our budget cannot bear. In addition, the smaller the amount, the greater the chance of receiving a positive decision from a loan company.
Can anyone get loans without a BIK?
Remember that we will not necessarily receive the amount we have applied for. Although most non-bank institutions do not check whether the client is in BIK, we cannot rule out that a negative credit history will affect the final decision.
Seeing such an offer, many indebted people will think that it is an offer for everyone. Some people say: no matter how much my debt is, I will get a loan anyway. However, this is a wrong thinking, such a product is primarily addressed to people who have already repaid their arrears and still appear on the BIK list. Let’s not forget that disappearing from such a base is a more complicated process than getting to it. We will be obliged to wait up to 5 years for the entry to be deleted. Another group to which such an offer was addressed are people without any entries. The inability to verify creditworthiness is as problematic as the occurrence of negative information. People with low debts may also have a chance for loans without BIK. However, it all depends on the lender and whether we are trying to pay back the debt.
Installment loans without BIK are granted by private companies, and some of them also provide services at the client’s home. They are not the cheapest, but if we used other loan options, they can save us from oppression. However, it is important to borrow reasonably. It is not without reason that rush is a bad adviser. It is when we need a specific sum of money “for yesterday” that we make the least thoughtful decisions. We do not pay attention to where we get it – it only matters whether we get it on time. How to protect yourself from making one of the more expensive mistakes in your life?
When we are already in debt and looking for another lender, let’s check the total cost of the loan and the maximum interest rate. The information about whether a given company makes it possible to extend the repayment date is also important. It consists in issuing an appropriate instruction and paying a fee, thanks to which we will receive a new repayment date. It is worth noting that this should be done before the repayment deadline. To find out if there is such a possibility, read the regulations carefully, and if you still have doubts – discuss them with the company consultant. Let’s do everything not to increase the amount of installment loans just because we haven’t read something.
Costs and advantages of installment loans
We have already mentioned above that non-banking companies offer their clients to borrow small amounts, even if they are in debt. It should not be forgotten that the final decision on the amount of the loan depends on the individual assessment of each borrower. How is this possible, since theoretically they are loans without BIK? Just when we want to borrow more cash, it turns out that such declarations do not quite apply in practice. Companies verify clients in economic information bureaus anyway, which is why they are reluctant to grant loans for larger amounts to those who appear in any register as debtors. So what if, in the end, every customer will have to settle their debts (along with horrendous interest), since lenders will have to wait long months and even years. Therefore, before making a commitment, let’s check what installment loan costs we have to take into account.
Among the companies that offer loans without BIK we can find, among others, Ferratum. The offer includes not only installment loans, but also payday loans. The applicant may receive up to PLN 10,000 for 24 months. However, I read on the lender’s website, after all the database will be checked. The decision will simply be made on the basis of an analysis of the client’s individual situation.
Another company that assures its clients that they can get a loan without a BIK is the Concrete Fund. Thanks to the guarantee in the form of a guarantor, we can apply for financial support regardless of the state of the registers. However, the final decision depends on whether we have a stable source of income and what the financial situation of our guarantor looks like. It is also worth remembering that of course we will be checking in BIK, moreover, the question will also apply to our guarantor. Nevertheless, this will not significantly affect the acceptance or rejection of the application. More important are the other factors mentioned above.
Advantages of installment loans – summary
An installment loan has really many advantages, if only we will use it skilfully. Regardless of whether we already have any debt or have an impeccable credit history, let’s choose the amount of the loan not only to our needs, but also to the possibilities. Untimely repayment of debt may end in unpleasant (and expensive) debt recovery. Nobody wants to fall into a spiral of debt, because its consequences are very painful.