Millions of people nationwide make use of payday loans every year. While this type of borrowing proves problematic to some, many more find it a helpful option when occasional, unexpected financial difficulties arise.
Despite the popularity of this brand of borrowing, however, there is actually another option that most consumers would do well to consider. Installment-style personal lenders like Blue Trust Loans almost always beat their payday-focused competitors when a fair reckoning is carried out.
A Superior Type of Lending for the Average Borrower
The accessibility and ubiquity of payday lending opportunities have produced an undeniable momentum for that part of the industry. Many consumers who find themselves occasionally short of cash now default without thinking to such loans when they feel the need for some assistance.
In practice, though, it will often be much wiser to apply for an installment loan from a different lender instead. Loans of this general kind tend to suit the needs of borrowers much better than payday ones for reasons including:
- Term length. Payday lenders almost always expect to be paid back as soon as a borrower’s next paycheck has been deposited. The most common arrangement has an automatic withdrawal being scheduled for the same day the check will normally clear. In some few cases, that might work just fine for borrowers, as when only a little bit of financial pressure needs to be relieved. In many others, though, such restrictive repayment schedules end up creating more problems for borrowers, instead. The widely recognized, unfortunate phenomenon where some borrowers end up taking out one payday loan after another, for instance, can be attributed largely to this requirement.
- Other options. Installment loans tend to be more flexible than those offered by payday lenders in other ways, as well. An installment-based lender will often offer to extend larger loans compared to those who focus strictly on payday business. Some installment lending companies even have generous loyalty programs in place that reward responsible borrowers with lower rates and other benefits.
An Option Worth Considering When the Need for a Loan Arises
Thanks to benefits like these and others, many people who look into the matter come away convinced that installment loans make more sense than payday borrowing. That realization is starting to spread to such an extent that some experts now expect this style of lending to become the most popular of all.