There are plenty of loans similar to Balance Credit if you need quick cash for an unexpected expense. Suppose you need emergency care and visit an ER. The average bill for an ER visit is $1,200 to $1,300, which most people cannot afford to pay out of pocket.1 But an installment loan could help you pay off the high-cost medical debt in installments.
But is a loan similar to Balance Credit the best option for you? Learn more about this online lending option and how it compares to alternatives.
Finding the Right Personal Loan
There are multiple options for borrowers to choose from when they need a personal loan. However, finding the right personal loan is critical to avoid future financial issues.
What Are Personal Loans?
A personal loan, also known as a personal installment loan, is an amount of money you can borrow for a wide variety of uses, such as debt consolidation. According to a survey by the U.S. News, 69% of borrowers say their finances have improved since consolidating.2 Interested borrowers can obtain a personal loan from a bank or online lender.
Personal loans generally provide small to large loan amounts. The repayment length also varies but can last a few months to several years. When you are looking for the right loan for your specific financial situation, consider your monthly budget and how much time you want to repay the loan. Remember that longer repayment plans may result in smaller monthly payments, but the overall cost of borrowing money will be higher.
Types of Personal Loans
These are some common personal installment loan options to consider:
- Unsecured Loans — Most lenders offer unsecured personal loans. Unsecured loans do not require collateral, which means qualification will depend on your credit score, income, and other factors. If you have bad credit, know that there are lenders that offer unsecured bad credit loans.
- Secured Loans — Some lenders offer secured installment loans. To qualify for a secured loan, the borrower has to provide collateral. Most borrowers use car titles, savings accounts, investments, or valuables. Secured loans are risky because you may lose your assets if you experience financial difficulties during the repayment process.
- Variable Rate Loans — A variable rate changes frequently based on changes to index rates, such as the prime rate. If you get a variable-rate loan, it will be more challenging to budget your monthly payments. However, you could save money if rates decrease.
- Fixed Rate Loans — Most personal loans have fixed rates. A fixed interest rate does not change, which means your monthly payments will remain constant throughout the repayment process.
Why Is My Credit Score Important for Loans?
Your credit score is a reflection of your financial history and allows lenders to quickly determine how much of a credit risk you are.
There are different credit scoring models, such as the FICO Score, which ranges from 300 to 850 points. A higher score means you are more likely to pay your debt on time and responsibly manage your credit. While a low score means you may have trouble managing your money and may not follow the terms of your loan agreement.
Your financial activities directly increase or decrease your credit score. For example, your payment history makes up 35% of your FICO score. If you want to work on improving your creditworthiness, it’s important to pay all of your bills on time.
Common Fast Cash Loan Options
If you are considering applying for an installment loan, you may wonder how it compares to other options. You may have heard that a payday loan provides quick emergency funding for bad credit borrowers. But you may not know how a payday loan works.
Learn below how installment loans compare to other fast cash loans.
| Factor | Installment Loans | Payday Loans | Title Loans | Credit Card Cash Advances |
| Definition | Loans repaid over time in equal parts | Short-term loans due on next payday | Loans secured by vehicle title | Advances against credit line |
| Loan Amount | Typically higher | Usually smaller | Varies, based on vehicle value | Based on credit limit |
| Interest Rates | Lower compared to others | Extremely high | High, but lower than payday loans | High, but varies |
| Repayment Term | Longer, months to years | Very short, usually 2 weeks | 1 month to several months | Varies |
| Credit Check | Usually required | Often not required | Not typically required | Based on credit card terms |
| Rollover | Possible, with added interest | Common, with additional fees | Possible, with extra fees | Not applicable |
| Risks | Debt accumulation if not managed | Debt cycle risk, high fees | Risk of losing vehicle | High interest, debt risk |
Loans Comparable To Balance Credit: What You Need To Know
Balance Credit is an online lender that provides personal loans for unexpected expenses. The headquarters is located in Houston, Texas.
Balance Credit provides loans in various states across the US, but they are not a direct lender in all states. For example, Texas residents who apply with Balance Credit will work with an unaffiliated third-party lender.
How Do They Work?
Balance Credit provides personal installment loans from $100 up to $5,000 or credit services for loans from $100 to $2,500, depending on the applicant’s state of residence.
If you reside in Missouri, you may get an installment loan between $100 to $3,000. But if you are an Alabama resident, loans range from $2,050 to $5,000. That means if you need a small dollar loan in the Heart of Dixie, Balance Credit may not be an option.
Balance Credit does not provide upfront information on APRs for all states. In Missouri, borrowers can get an APR between 98% to 750%. But if you reside in any other state, you must contact Balance Credit to get an APR estimate. The loan repayment length can last up to 36 months in some states.
Who Are They For?
In order to qualify for an installment loan with Balance Credit, borrowers must meet the following requirements:
- Reside in a state in which we offer our products and meet the minimum age requirement
- Have a valid email address and verifiable phone number
- Have an active checking or savings account that has been open for at least 30 days and is not currently associated with another Balance Credit account
- Have a proven source of income that meets our underwriting criteria
How Will the Application Process Work?
If an applicant meets the minimum requirements for a Balance Credit loan, they may complete the application form on the lender’s website. The application form will ask for the applicant’s Social Security number, source of income, and other personal details. If the applicant is approved, they can get money in their bank account by the next business day.
CreditNinja: How Does It Compare?
CreditNinja is an online lender that provides fast personal loans for all types of unexpected emergencies. We understand that not everyone qualifies for traditional loans, and that’s why we aim to be a convenient alternative solution.
Since 2018, CreditNinja has originated over 475,000 loans and helped over 275,000 people get the financial relief they need quickly.
How Does CreditNinja Stand Out?
CreditNinja stands out by offering personalized loan terms to fit individual needs better. We know that not every financial situation is the same, so we ensure that your loan terms are manageable for your income.
In addition, we offer multiple benefits that make the repayment process less of a hassle, such as:
Fast Funding
CreditNinja provides quick funding solutions when you are faced with an unexpected expense. Eligible borrowers could get their money deposited in their bank account as soon as the same day.* By quickly getting your money, you can schedule a car repair with your mechanic, avoid late payment fees, and get the medical care you need.
Competitive Rates
Our interest rates are competitive to give our customers a financial advantage. Your rate affects your monthly payment amount and the total you pay for borrowing cash. That’s why we aim to be an alternative to high-cost payday options.
Flexible Repayment Plans
Our repayment plans are flexible to fit your needs. Borrowers can get short or long-term repayment schedules. And if a borrower wants to save money, they can repay their loan early without any penalties.
Quality Customer Service
It’s important for a customer service team to provide quick, helpful service. CreditNinja is known for offering exceptional customer service. We prioritize our customers, and it shows! We currently have a 4.4-star rating on TrustPilot from 7,849 online reviews.
Transparent Terms
CreditNinja offers transparent terms so there are no surprises that lead to unexpected costs. Unlike other lenders, we include all the terms and fees in your loan offer. Consumers are able to see just how much their loan will cost before agreeing to work with us.
Who Should Pick CreditNinja?
CreditNinja is a lending option for borrowers who have a bad credit score and have difficulty getting traditional loans.
Most personal loan lenders base eligibility entirely on your credit score. If you cannot meet a strict minimum credit score requirement, then you cannot get financial assistance. But at CreditNinja, we look at your entire credit history. We request your credit report from one of the three major credit bureaus to better understand your financial background.
If you can reliably pay back your personal loan on time, you could be eligible with CreditNinja despite having a bad credit score!
How Will the Loan Process Work?
The loan process only requires 3 simple steps. Take a look at the detailed process below:
- Apply Online — The quick and easy online application can be accessed on our website or mobile app. Applicants only need to provide basic information.
- Find Out if You Qualify — Applicants can get a same day* decision from CreditNinja! If you qualify, you will be asked to complete the simple bank verification process and e-sign your personal loan agreement.
- Get Your Money — After your bank details are verified, you can get your loan money directly deposited on the same day!*
FAQs About Loans Similar To Balance Credit
While the minimum credit score varies by lender, generally, a higher score improves your chances of approval. Some lenders specialize in loans for those with fair credit or below. It’s best to check with the specific lender for their requirements.
Loan amounts are typically based on factors like your income, credit history, and the lender’s policies. Lenders assess your ability to repay and offer an amount that aligns with your financial situation.
Yes, many borrowers use installment loans for debt consolidation. By combining multiple debts into one loan, you might secure a lower overall interest rate and simplify your finances with a single monthly payment. However, ensure the terms and conditions align with your debt reduction goals.
Origination fees are charges some lenders impose to cover the cost of processing your loan. They can be a flat fee or a percentage of the loan amount and are typically deducted from the loan funds. This means the amount you receive might be less than the original loan amount.
The three major credit bureaus (Equifax, Experian, and TransUnion) provide credit reports that lenders use to evaluate your creditworthiness. Your credit history with these bureaus, including
your payment history and credit utilization, significantly influences your loan approval and terms.
If you have fair credit, you might face higher interest rates or stricter loan terms. It’s crucial to shop around and compare offers from multiple lenders. Also, consider improving your credit score by paying down debts and making timely payments to qualify for better terms in the future.
Before accepting a loan, use a loan calculator to estimate your monthly payment. Ensure it fits comfortably within your budget, considering all your expenses. If the payment seems high, you might want to look for a loan with a longer term or a lower interest rate.
CreditNinja: What You Should Know About Loans Similar to Balance Credit
When consumers need fast loan amounts for an unexpected expense, there are numerous lenders to choose from. Loans similar to Balance Credit provide fast funding through a simple online process. But the right option for you is affordable for your budget. Make sure you inquire with multiple lenders to find the most affordable loan offer.
CreditNinja provides more than just convenient funding. We also offer an online blog that answers all types of financial questions. Check out the Dojo to learn why your credit score may go down when it is checked, how to open an investment account, and much more!
References:
- Cost of Urgent Care vs. Cost of ER Visit | AF Urgent Care
- Debt Consolidation Pays Off for 69% of Borrowers | U.S. News
- State Disclosures | Balance Credit
