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April 29, 2024
Installmentloans

Don’t get Stuck! Why Installment Loans are better than Payday Loans

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At Idaho Finance, we believe in offering quick emergency cash in a safe and transparent way. When an unexpected expense such as medical bills, a car repair , or a house emergency leaves you searching for money FAST, it is easy to panic and go to the first place that will give you cash.

Before you get a payday loan, let’s talk about why getting a long-term installment loan is better for you in the long run than a short-term payday loan. 
 

Payday Loan VS Installment Loan 

Payday loans and installment loans both offer access to quick cash, but they are quite different in their approach. Payday loans are short-term fixes that seem great at first, but then spiral out of control quickly. However, installment loans are less stressful and more financially responsible.

You may need a credit check for an installment loan, but as long as you have a steady paycheck, an installment loan company such as Idaho Finance can probably help you.
 

Get Out of the Cycle of High-Interest Short-Term Debt: Payday Loans 

Payday loans are designed to be quick and easy and are marketed to people who have bad or no credit and need emergency cash. You get the money fast, but you have to pay it off fast. It is typically a smaller loan, but you need to pay it off within 30 days or with your next paycheck. It seems quick, easy, and painless.

However, there is a catch: The interest rate on payday loans is sky high and can reach up to 400% APR!  What started out as a small loan can snowball into a giant debt that you can’t get away from. If you can’t pay the loan off immediately, before you know it what was a $300 loan has turned into an $800 loan in just 5 months.

There is a better option.


Why Choose a Short or Long-Term Installment Loan 

Installment loans offer a much more manageable way to deal with unexpected expenses. You may be borrowing a larger amount of money with a long term installment loan than a payday loan, but the lower interest rate and repayment in fixed monthly payments over a longer period of time mean you will be repaying less money in the long run.

We at Idaho Finance believe in offering installment loans because:

1.Lower Interest Rates: Short and long term installment loans come with significantly lower interest rates than payday loans.

 2.Building Credit: Making consistent monthly payments will help build your credit score and will open the door to better loan options and better interest rates later. See our previous credit repair blog for more information on how an installment loan can help you rebuild your credit.  

3.Transparent fixed monthly payments: Instead of the total loan due by the end of the month or your next payday, installment loans are divided into fixed monthly payments spread out over an agreed-upon time. This can be months or even years!  This gives you the breathing room to fit your loan repayment into your budget without increased anxiety as your next payday approaches. 
 

Emergency Cash Loans 

While payday loans can be tempting because of how quickly you can get the money in a crisis, in the long run, installment loans provide a less stressful and more sustainable way of repaying an emergency loan.

With lower interest rates, the opportunity to build credit, and manageable monthly payments agreed upon between you and the lender, installment loans are one of your best options to get cash quickly to pay off a car repair, medical bill, or other financial emergency. 

Idaho Finance is a licensed installment loan lender. We do offer both short-term and long-term installment loans. Applying for a loan from Idaho Finance is a simple process, and we look forward to working with you.

We are located in Meridian, ID. We also help people in Caldwell, Nampa, Star, Eagle, and Boise, Idaho. Call Idaho Finance at (208) 893-2330 or contact us online to talk about how we can help you get an installment loan.
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