Loans in Virginia (VA)

Hunting for Payday Loans and Installment Loans in Virginia (VA)

The poverty rate in Virginia has been slightly dropping over the years, and the average income is generally higher compared to other nations. Because of this, you could say that the citizens of Virginia are fairly well-off when it comes to money.

There is, however, a 4.8% unemployment rate – and some citizens are still struggling to put food on the table at the end of the month. This is why many of them are opting for payday loans and loan installments in Virginia – mainly because these are the only types of lenders that do not show them the door.

The Basics of Payday Loans and Installment Loans in Virginia

Technically speaking, when you take out a loan from the bank, the direct lender checks everything from your income to your credit score. They need reassurance that you have the means of paying back the loan – and that you are trustworthy enough to be given the money. The higher your credit score, the more trustworthy you will seem – and the lower your interest rate will be.

However, with Virginia bad credit loans and installment loans, the lender will not look at your credit score – nor will he/she care about how much you make every month. They will only take you up on your word that you can pay the money back.

However, considering that there is a certain risk factor with these loans, the interest rates are quite high. For example, in Virginia, if the loan is under $1,400 – but higher than $701 – then the interest rate will be 18% per month. On the other hand, however, if the loan goes higher than $1,400, then the interest rate can be as small as 15% per month. It all depends on how much you borrow.

There are certain lenders that offer extended loans that can be paid over a few months. These are called “online installment loans.” However, these loans can cost you a fair amount in interest – and can bring you in more debt than you originally were if you are not careful enough.

Credit Scores vs. Payday Loans

When applying for online payday loans and installment loans in VA, many people do not seem to understand how the credit score comes in the mix. For example, while the direct lender may not refuse an application because of low credit, they will still look at it. Sometimes, it is not even accessed – so if paid on time, you might actually benefit from the loan.

However, if you fail to pay back the money, rest assured that they will send notice to the credit bureau. The later you are with the payment, the more it will damage your credit score. In return, this can prevent you from getting a traditional loan or a mortgage – mainly because you are seen as a high-risk person.

Final Thoughts

Short term loans and personal loans in Virginia can be very dangerous if not handled cautiously. However, if they are paid on time, they might not be such a bad idea. Still, bear in mind that they are a solution for the short term and that they might not be very helpful for long-term problems.