Despite the credit crunch, many online loan companies are actually increasing their loan limits from $1000 to help borrowers who need a fast cash advance with low credit requirements. Many people are finding it tough to cope with job loss, pay cuts, recession, inflation, rising gas costs etc. It is becoming common to use larger installment loans to cope with unexpected expenses until your finances ease. However, you still need to tighten your belts and cut down on unneeded expenses since easy loans are not a permanent solution. Easy personal loans are definitely not easy to pay off!
Being over reliant on personal loans when you have bad credit can be a bad idea. Over time, the accruing interest fees can really damage your household budget. You will end up with less and less disposable income in the subsequent months as the amount you owe keeps growing.
Unfortunately, unexpected expenses hit us with the most impact when we do not have any savings. It can be an emergency room visit to the hospital, a car repair or even just to pay the tax man this year. It is common for households to have reduced savings caused by the rising prices for gas and food. Many people are actually borrowing $500 to $2500 just to pay for necessities such as groceries, utilities bills and rental etc. It is an obvious sign that their income are not sufficient to handle their lifestyles.
Borrow $2500 for 3 Months
If you need a one time $2500 loan for expenses you did not plan for, such as Christmas shopping, taxes, and school etc, you should be able to cover back using your income for the next few months. However, it is still too easy to borrow money with bad credit, so resist the temptation.
The average income for online loan borrowers is around $30,000. So it is a surprise that not all borrowers come from low income groups. Nevertheless, those with college education and high paying jobs can have bad credit and need a loan fast from time to time. This is why direct lenders are increasing the loan limits within state regulation caps to meet the demand from borrowers. Of course, the maximum amount you can borrow online depends a lot on your monthly income.
By increasing the borrowing limit, you can avoid taking multiple loans from different lenders in order to meet the amount you need. It is more convenient to pay a single lender compared to two or three, in case you mixed up their payment deadlines and result in late payment fees or roll-over fees. For large installment loans, you can take a longer time to pay back, such as a 90 day loan for $2500 that spans 3 pay checks for those who are paid monthly.