Traditional lenders like banks and credit unions have lengthy applications and a series of requirements that have to be met before any loans are approved. The process can take anywhere from a few days to ten days. This is not a long time unless the need for cash is immediate. Many people will not meet all the requirements so a traditional loan is not an option.
Companies, such as Maxlend Loans, that offer installment loans with minimum requirements are referred to as non-traditional lenders. The application process is short, approval is much easier to get, and money can be available in as little as one business day. That convenience comes at a high price. Interest rates are extreme and penalties for late payments are steep. Consider the costs and consequences of late payment carefully before applying.
Applicants have to be at least eighteen years of age and be United States citizens. A verifiable source of income and an active checking account are also required. Applicants cannot be involved in a bankruptcy case. Active military personnel and their family members are ineligible for loans. This particular company does not operate in eleven specific states, so location may render people ineligible as well.
Limits and Payments
The lending limit for the first approved loan, if approval is granted, is up to one-thousand dollars over a period of six months. Payment schedules are flexible and can be aligned with client paydays. Those who are paid biweekly, for example, will have twelve equal payments to make. Weekly paycheck receivers will be set up with twenty-four payments.
There are no penalties for paying off the loan early. In fact, paying early can lower the total cost of the loan because interest rates are compounded throughout the length of the loan. Paying more on the principal amount can be done at regularly scheduled payment times.
Ways to Avoid Paying High Interest Rates
Planning ahead for emergencies can prevent the need for a non-traditional loan. Keeping one credit card empty of charges will allow for a cash advance at a moment’s notice. A small savings account just for emergencies is wise.