Verge Credit is a lender who used to offer installment loans. Currently, Verge Credit isn’t accepting new customers. Thankfully, there are other options available for people who need extra cash. Here, you’ll learn about payday loans, personal loans, and other installment loans that could help you take care of your unexpected expenses!
Finding The Right Personal Loan
There is no shortage of funding opportunities available for borrowers with all types of credit scores. But, with so many options, how do you know which loan is the right one for you? To find your perfect loan, it is usually best practice to start with some financial preparation.
Begin by checking your most recent credit report and credit score. These results will let you know which types of lenders and loan products may be a good fit for you and which ones you shouldn’t bother wasting your time with. For example, if you have not so great credit, you may not want to even bother looking at loans from a traditional bank. Instead, you may want to focus your efforts on lenders who specialize in bad credit installment loans.
After you are more familiar with your financial situation, you can start researching lenders and comparing offers.
How to Compare Loan Offers
If you decide that getting a loan is the right choice for you, be sure to research your options. Check out different direct lenders like banks or credit unions, and compare your loan offers. When researching and comparing offers, be sure to pay close attention to details such as:
- Qualification requirements: Many lenders have certain qualifications borrowers must meet in order to receive loan approval. These requirements are why it is so important to review your credit score / credit history before you apply for a loan. Other than minimum credit score requirements, lenders may require other qualifications such as a minimum bank account balance or collateral. There are also lenders who have very few if any qualification requirements, which may provide options to consider for consumers who have been struggling financially.
- Collateral: Some types of loans require what is called collateral. Collateral is an asset (like a car, home, jewelry, etc.) with equity that a borrower is willing to use to secure loan funding. Secured loans that typically require collateral include home equity loans, auto loans, or auto title loans. If you don’t want to use collateral, you should look into unsecured loans instead of a secured loan.
- Loan amounts: Your loan amount represents the funds your lender has approved you for. When applying for a loan, the lender will usually ask about your desired loan amount right off the bat. That way, they can guide you towards financial products and deals that may work well given how much money you want to borrow.
- Monthly payment: Your monthly payments are how much you must contribute (usually on a monthly basis) to repay your loan. While lenders may customize payments to fit your unique financial situation, know that higher loan amounts usually require higher monthly payments, while lower loan amounts can typically be repaid with lower payments.
- Interest rates: Interest rates are essentially fees for borrowing money. The higher your interest rates, the more you will have to repay over the course of your loan terms. Usually, borrowers with good credit are able to receive lower rates while borrowers with low credit scores may have to deal with higher rates.
- Repayment terms: The repayment terms of a loan represent how long it should take for the borrower to fully repay their loan, plus interest and fees. Once you have a loan, keeping up with the payment date listed in the repayment terms will be crucial in not only repaying the loan but in preventing your credit from dropping!
- Fees and other charges: Most loans come with fees or charges of some kind. Common fees you will find with most loans are origination fees and late payment fees. An origination fee is essentially the lender’s charge for writing your loan contract. Late payment fees are charges borrowers may come across if they miss or submit late payments. Less common fees include charges like prepayment fees, which is essentially a penalty charge for borrowers who pay back their loans early.
Loans Like Verge Credit: What You Need to Know
Currently, Verge Credit isn’t offering new loans. So, if you were looking to apply for a loan you’ll have to go elsewhere. However, borrowers who already currently have a loan with Verge Credit are still responsible for repaying their loan balance.
Alternative Loans
While Verge Credit isn’t currently available, there are other options consumers can turn to when they need extra money.
Online Installment Loans / Personal Loan
Installment loans are a type of personal loan borrowers can use for a wide variety of expenses. Personal installment loans are a versatile financial product, which includes options for borrowers with good credit, bad credit, or even no credit at all! Consumers can also take advantage of competitive interest rates, flexible terms, and other perks that can come with installment loans.
Payday Loan
A payday loan is a small dollar loan designed to help consumers access extra cash while they are in between paychecks. Since they are small dollar loans, payday lenders typically expect full repayment within about two weeks or less. Borrowers who fail to repay their payday loans in about fourteen days usually then have to deal with extremely high interest rates that put them at risk of falling into a cycle of debt.
Credit Cards
Consumers can also use credit cards to pay for virtually any expense. Unlike an installment loan, consumers aren’t responsible for repaying their entire balance back right away. However, credit card debt can easily rack up and become another financial burden to deal with. According to the Federal Reserve Bank of New York, Americans currently owe a total of $1.08 trillion in credit card debt.1 So, if you can’t pay off your credit card balance on a regular basis, you should reconsider using it to pay for your expenses.
Cash Advances
Similar to a payday loan, consumers can also use cash advances for small, short-term financial needs. Consumers can access cash advances with their credit card (although interest rates may be higher), or even via mobile apps. Also very much like payday loans, cash advances also come with short repayment terms and high rates/fees.
Comparison of Installment and Payday Loans
| Factor | Personal Installment Loans | Payday Loans |
| Overview | More suitable for larger expenses and long-term financial planning, with regulated interest rates and longer repayment terms. They require a more thorough credit check but can help in building a credit score. | Designed for immediate, short-term cash needs with minimal eligibility requirements. They come with extremely high interest rates and short repayment periods, posing a significant risk of trapping borrowers in a cycle of debt. |
| Loan Amount | Typically ranges from a few thousand to tens of thousands of dollars. | Usually small amounts, often between $100 and $500, sometimes up to $1,000. |
| Interest Rates | Generally lower, varying from about 6% to 36% APR, depending on creditworthiness. | Extremely high, can range from 300% to over 600% APR. |
| Repayment Terms | Longer terms, usually from 2 to 5 years, sometimes longer. | Very short terms, typically 2 to 4 weeks (until the next payday). |
| Eligibility Criteria | Requires a credit check; approval depends on credit score, income, and other factors. | Often no credit check required; main requirements are a steady income and a bank account. |
| Application Process | Can be more involved; may require proof of income, credit check, and other documentation. | Usually quick and easy, often with instant decisions and same-day funding. |
| Usage | Can be used for a variety of purposes like debt consolidation, home improvement, major purchases, etc. | Generally used for emergency expenses, like covering bills or unexpected costs. |
| Collateral | Unsecured or secured (depending on the loan type). | Typically unsecured. |
| Impact on Credit Score | Regular payments can improve credit score; missed payments can harm credit score. | Rarely reported to credit bureaus unless in default, so usually doesn’t help build credit. |
| Early Repayment | Often possible without penalty. | Possible, but the total amount due typically remains the same. |
| Regulation | Heavily regulated by federal and state laws. | Regulation varies widely by state, with some states banning them altogether. |
| Rollover | Not applicable. | Borrowers can often roll over the loan into a new loan, but with additional fees. |
| Financial Risk | Lower risk due to regulated interest rates and longer repayment terms. | High risk due to high interest rates and short repayment terms, leading to a cycle of debt. |
CreditNinja: How Does it Compare?
CreditNInja personal loans are another option to consider. We’ve been a direct lender since 2018, and have helped more than 250,000 people find financial solutions! Borrowers who use CreditNinja installment loans can take advantage of benefits like:
- Flexible terms
- Competitive rates
- Helpful customer service
- More!
How to Prep Your Finances for a Personal Loan
Set yourself up for success and take the following steps before applying for a loan:
- Organize Your Budget
To start, take inventory of your current expenses. What recurring bills are you responsible for? Do you have any other loans? Once you have a handle on what your current expenses are, you can better decide if adding a loan into the mix will ultimately be helpful or not.
- Pay Off Debt Where You Can
According to USA Today, Americans currently owe a total average balance of $356 billion in personal loan debt.2 If you currently have several loans out, you may want to pay off some of that debt before applying for another loan. Lowering your debt may not only help you get approved for a better loan later on, you may also see your credit improve after paying off debt.
- Prepare a Repayment Plan
Ask yourself how long you want to take to repay your loan. The answer to this question will help you determine what your ideal repayment terms are. Make sure your terms allow you to have a monthly payment you can afford without adding any extra stress into your life.
Know the Difference Between a Soft and a Hard Credit Inquiry
A soft credit inquiry is an unofficial look at your credit report. Consumers can perform soft credit inquiries as often as they like to keep tabs on their credit scores and financial history. A hard credit inquiry, or hard credit check, is an official look at your credit using data from any one of the three major credit bureaus (Experian, Equifax, and TransUnion). Most financial institutions will perform hard credit checks before they approve borrowers for a loan. Hard credit checks also have the potential to drag down your credit score if you apply for too many loans in a short period of time.
How Do CreditNinja Personal Loans Work?
The CreditNinja installment loan process has never been easier! Here’s how it works:
- Fill out our easy online application. You should receive an approval decision right away!
- Upon approval, we’ll send over a loan contract for you to read over and sign. Feel free to ask your loan agent about anything that doesn’t make sense. Once you feel comfortable, sign your contract!
- After that, we’ll use direct deposit to send funds right to your bank account!
Installment Loan FAQ
Look at interest rates, fees, loan terms, and the lender’s reputation. Consider how your credit score aligns with your financial needs.
This varies, but generally, scores above 600 are preferred. Lower scores might mean higher interest rates or the need for a co-signer.
Online lenders often provide faster applications and funding. Banks might offer better rates for existing customers with strong credit.
Yes, making timely payments can boost your score. However, late or missed payments can have a negative impact.
Be wary of high interest rates, hidden fees, and early repayment penalties. Always thoroughly read the loan agreement.
Who Are CreditNinja Personal Loans For?
CreditNinja personal loans are for borrowers struggling financially, who feel like they have no other options available. Finding installment loans when you don’t have the best credit score isn’t always easy, which is where CreditNinja may help. Check out our simple application online to see how much cash you could get today!
References:
- Household Debt and Credit Report | Federal Reserve Bank of New York
- Average debt in America: 2023 statistics | USA Today
- https://www.vergecredit.com/
