Top Reasons Why People Take Out Installment Loans From Maxlend Loans

Maxlend Loans is a lender that specializes in short-term installment loans. They offer loans of up to $2000 to qualifying borrowers who repay the loan on a fixed schedule of payments over six months. It is easy for most people to qualify for one of these loans; they just need a verifiable source of income that meets a minimum requirement and a checking account where funds can be deposited and payments can be debited. The following are some of the top reasons why people take out short-term installment loans.

Unemployment

One of the most common reasons why people turn to installment loans is to survive a period of unemployment, especially certain types of employees who don’t qualify for unemployment benefits. By taking out a short-term loan, the borrower is able to maintain his or her lifestyle while seeking a new job.

Paying Off Debt

Another very common motivation for taking out a short-term loan is to pay off other debt. Even though short-term loans tend to have high interest rates, it may be worthwhile to cancel a large credit card debt, for example, that also charges a high rate of interest along with extra penalty fees.

Bad Credit

Many people turn to short-term lenders simply because they are unable to get credit elsewhere. Banks only lend to people who have a high credit score, which often rules out people who have been in financial distress for awhile. Short-term lenders, on the other hand, will lend to most people regardless of their credit history.

Unplanned Expenses

Sometimes a sudden need for cash comes out of the blue. A car problem, for example, is not only expensive to fix, but it can take away a person’s ability to get to a job. A broken refrigerator is another example of a problem that needs an immediate fix so that a family can meet their basic needs. Since short-term lenders usually deliver the loan within 24 hours, a short-term loan can be a good choice for dealing with an unforeseen expense.

Holidays

Finally, there is an enormous amount of pressure at the holidays to express love through gift-giving and entertaining. Parents especially want to be able to buy gifts for their children on special occasions. Often, they turn to short-term loans to meet this need.