Payday loans are tempting when you need cash fast but they come with astronomical interest rates. eLoanWarehouse offers an alternative. This online lender offers personal loans up to $3,000 that’s a more affordable option than traditional payday loans.
eLoanWarehouse makes borrowing easier with a simple application process. They offer installment loans so you can pay over time. Perfect for those who need a little extra help to get by between paychecks.
While eLoanWarehouse may be an option for you, it’s always best to compare lenders. Looking at interest rates, fees and repayment terms will help you find what’s best for you. Remember any loan is a big decision that affects your finances.
Payday Loans and Installment Loans
Payday loans and installment loans are two types of short term borrowing options. They have some key differences in how they work and what they cost borrowers.
What are Payday Loans?
Payday loans are small short term loans meant to be repaid by your next payday. They’re usually for $500 or less. To get a payday loan a person typically writes a post-dated check for the full amount plus fees. On the due date the lender cashes the check.
Payday loans are easy to get but very costly. Fees can be $15-$30 per $100 borrowed for 2 weeks. This means very high annual percentage rates (APRs) of 400% or more.
People use payday loans for emergencies when they’re short on cash. But the high costs can trap borrowers in a cycle of debt.
How do Installment Loans work?
Installment loans let you borrow more and pay back over time in fixed payments. Loan amounts are usually $1,000-$10,000. Repayment is spread out over months or years.
These loans have lower interest rates than payday loans. APRs are often 100% or less. Payments are the same each month so budgeting is easier.
Installment loans require a credit check. Lenders look at credit scores, income and other factors. This takes longer than a payday loan.
Requirements and Eligibility Criteria
Payday loans have minimal requirements. Borrowers need:
- A bank account
- Proof of income
- Valid ID
Installment loans have stricter criteria:
- Credit check (scores of 580-640+ often required)
- Proof of steady income
- Low debt-to-income ratio
- Sometimes collateral for secured loans
Lenders also look at employment history and monthly expenses. Meeting these higher standards can mean better rates and terms.
Interest Rates, APRs and Fees
Payday loan costs:
- Fees of $15-$30 per $100 borrowed
- APRs of 400% or more
- Extension fees
Installment loan costs:
- Interest rates from 6% to 36%
- APRs usually under 100%
- Origination fees of 1-8% of loan amount
Installment loans cost less over time. But payday loans can be cheaper for very short term use if paid back quickly. Borrowers should compare total costs.
Apply for a Loan with Eloanwarehouse
Getting a loan from Eloanwarehouse is easy and fast. Here’s how it works.
Step by Step Application Process
- Go to the Eloanwarehouse website
- Fill out the online form with basic info
- Provide proof of income (like pay stubs)
- Enter bank account details
- Wait for approval (usually quick)
- Sign loan documents online
- Get funded
The whole process can be done from home. No need to visit a store or talk to anyone on the phone. Most people get funded within one business day of approval.
Loan Terms and Repayment
Eloanwarehouse loans up to $3,000. Repayment term is usually 3 to 12 months. Longer than most payday loans.
Payments are set up to match when you get paid. For example if you get paid every 2 weeks, you might have a payment due every 2 weeks.
Total cost of loan is based on:
- How much you borrow
- How long you take to pay it back
- Interest rate
Read all the loan terms before you agree. Make sure you know how much you’ll pay in total.
Security and Privacy in Online Loans
Eloanwarehouse takes security seriously. They use encryption to protect your personal info. This keeps your data safe from hackers.
They also follow privacy rules. They won’t share your info with other companies for marketing. But they will check your credit when you apply. This is normal for most loans.
Read their privacy policy. This explains how they use and protect your info. If you have questions you can always ask before applying.
Find the Right Loan for You
Not all loans are the same. Eloanwarehouse tries to match you with a loan that’s right for you. They look at:
- How much you make
- Your job
- Your bank account info
They use this to determine how much they can lend you. And also to set your interest rate.
Keep in mind these loans are more expensive than bank loans. But cheaper than some payday loans. Compare options before you choose.
Think about why you need the loan. Can you wait and save up instead? If not make sure you can afford the payments before you apply.
0 Comments