In Wisconsin, borrowers with less-than-stellar credit turn to payday lenders for loans. The lenders provide a variety of loan products that accommodate consumers with bad credit. Local lenders can explain each loan product that is available that meets the borrower’s financial needs.
Payday Loans and Cash Advances
Payday loans and cash advances are similar products. However, the cash advances are often set up as installment loans for qualified consumers. The amount of the loan is determined by the consumer’s income, and the total loan amount plus interest is repaid on the following payday. The borrower has the option to renew the loan several times to pay it off in smaller increments, but new finance fees and additional interest are applied.
Installment Loan Products
Installment loan products offer a higher loan value. Typically, the loan won’t exceed $2,000. The lender evaluates the borrower’s income to determine the highest amount available to them. Most lenders that cater to consumers with bad credit offer up to six installments. The loan contract identifies the exact cost of each payment as well as the interest and finances fees. It also specifies what happens if the consumer defaults on the loan.
Prepaid Club Cards
Prepaid club cards are offered to consumers who utilize any of the loan products frequently. The value of the loan is loaded onto the prepaid card and mailed to the consumer. It allows the lender to reload funds when the consumer starts a new loan contract. Select programs provide consumers with discounts and awards for using the card.
Personal Loan Products
Personal loans are available to all qualifying consumers. Payday loan lenders don’t evaluate the consumer’s credit score to approve personal loans in most instances. However, consumers with better credit ratings receive lower interest if a credit assessment is performed.
In Wisconsin, consumers apply for loans when they are facing dire financial circumstances. The loan products range from payday loans to installment options. The amount of the loan is calculated according to the applicant’s gross income per pay period or each month. Consumers who need to review more about the loan products can contact Blue Trust Loans today.