Your Credit Score and Installment Loans

Have you ever been thinking to take a loan in the bank? Or are you hesitating between an opportunity to get an installment loan and a usual loan? If so, you should always remember that good personal credit history would always be an advantage for the borrowers while addressing to the financial institutions. Thus, it is advisable to be responsible treating your bank accounts, as excellent credit history would always be confirmation of your customer’s reliability.

Before going to the bank, it might be useful for you to know that all the banks credit departments are usually divided into four main functional areas: acquisition, servicing, payment processing and collection. And this is acquisition department’s area that gathers information about credit history of the customer, reviews it, and decides whether to grant the loan or not. The other areas provide following activities related with lending. Large banks may also divide loans department into several types of loans (such as direct and indirect loans, business loans, leasing loans, loans for education purposes, etc.)

In case it is so happened that customer has not good credit history, he still has a chance to get short term loans for bad credit, because acquiring of an installment loan isn’t as problematic as acquiring of a usual loan. Usually for those persons banks offer an option to take installment payday loan – a loan on the upcoming paychecks received. However, too high level of interest rates and, as a result, huge sums of repayment in comparison with money loaned using this type of financing makes customers to do their best in order to avoid taking payday installments. This type of loans is also not considered to be very safe as a person, borrowing money, gets likelihood to stick into even more serious depts. It is advised to use possibility of payday loans if person would like to cover short-term expense or in case of need some additional cash for daily needs.