Installment loans may be the wave of the future of lending, but when looking for one, you should stay rooted in the past.
Why? Quite simply, because now is the time when many unscrupulous lenders are changing the title of their product from “payday loan” to “installment loan” without changing the product at all!
An installment loan is superior to a payday loan in every way. Payday lenders know this! They also know the federal government is cracking down on payday loans. So to hide in plain site, they just change a few words around.
So “payday loan” becomes “installment loan.”
For this reason, it’s important to find a real installment lender. A business that didn’t just change its title, but has been in the business lending money to hard working Americans for a long time.
Which is why we say — to take advantage of this wave of the future, its safest to stick with an established lender, a lender from the past.
The Future is Now
The industry of payday loans is bigger and stronger than ever before. To curtail these businesses, the CFPB (Consumer Finance Protection Bureau) have instituted a new set of policies and rules for lenders.
Many lenders have decided it is easier to change their name than to change their product to fit in with the new rules.
Installment loans are relatively new, but are surging to keep up with demand.
In 2015 installment lenders extended over $24 billion in loans to people with low credit scores. That is a 78% jump from 2014, and nearly 300% increase from 2012.
It’s a growing industry!
And now with payday lenders getting into the game (in name only) installment lending will grow bigger and faster than ever before.
Installment loans are loans with established repayment schedules and payment amounts. When you sign up for this kind of loan, it isn’t open-ended. You know exactly when every payment is due, and how much it will be.
REAL installment lenders do not
Charge you up-front fees
Change the interest rates
Ask you to refinance
These are all tricks to separate you from your money.
So look to the past – find a lender that does installment loans and has ALWAYS done installment loans! Find a lender that does business the old fashioned way, by honoring contracts, and treating customers with respect.