The processes and policies of non-traditional lenders differ greatly from one to the other. It is important to fully understand the interest rates, the terms of any type of loan, and penalties for late or non-payments. Many people take out a loan out of desperation in the event of an emergency and find themselves in a vicious circle of debt. Most lenders are very clear about fees, loan options, and alternatives. That extent of transparency is what people can expect from Maxlend Loans.
Types of Non-Traditional Loans
Payday loans are the easiest ones to get approval for because all that is needed is a job. People agree to pay back the total cost of the loan plus exorbitant amounts of interest in one lump sum. The expense is excessive, but some people have very little choice in the matter. People with bad credit, no credit, or a high debt ratio cannot get a loan from a bank or credit union. Theses loans are to be avoided at all costs.
Installment loans are also offered by non-traditional lenders. These are a little more reasonable because payments can be spread out for up to six months. The interest rates are still very high, but payments are easier to budget. The important thing to keep in mind is payments have to be made in full and on time to avoid heavy late fees.
Applicants have to be at least eighteen years of age and have a certain amount of guaranteed income each month. Some lenders require clients to have an active bank account from which they can withdraw payments. Depending on circumstances, some applicants may need a co-signor before approval is given.
Some people use this method of borrowing money on a regular basis. It is not unusual for non-traditional lenders to have repeat requests for loans. Typically, clients have access to higher loan amounts once they have successfully paid off the first loan. This avenue is a quick and easy way to get emergency needs met, with most loans being approved in a matter of minutes. Money can sometimes be transferred into the account of a client on the same day of approval.