Allotment loans could be your best choice during a financial emergency.
In a jam and need money? You can make a positive financial decision by applying for an allotment loan. Discover how allotment loans can help you by reading below.
For some Americans, their paycheck is barely enough to cover their monthly expenses. So, if something unexpected happens—your car breaks down, your child gets sick—you probably don’t have enough money to cover the additional expenses. Allotment loans can help you get out of any type of financial jam without getting into serious debt. Find out how below.
What Are Allotment Loans?
An allotment loan can be used for any expense or financial need. Some allotment loans have fixed interest rates, require no collateral, and are paid conveniently through paycheck deductions. To pay these types of loans, employees are required to allot a specific amount from their paycheck each pay period. This means that the payments for your loan are automatically deducted from your paycheck every month or week until you have paid off the loan – this is based on your employer payroll cycle.
Many US employees have used allotment loan programs for various needs including starting an emergency fund, tuition fees, medical bills, as well as various financial emergencies.
Allotment Loans Versus Conventional Loans
Allotment loans offer numerous benefits compared with other types of loans. Below are the benefits of applying to allotment loans vs. traditional conventional loans.
1. Allotment Loans May be Available For Those With Bad Credit
Companies like Access Loans, do not affect your FICO credit scores during the application process. This means that employees applying for loan programs do not need to worry about a negative impact to their FICO credit score. When you apply for an emergency loan, the Access Loans team reviews your credit, employment history, and other important factors to determine eligibility. This alternative lending approach helps them offer emergency loans to customers who are currently excluded from traditional forms of credit available.
2. Easy Application Process
Skip the long and-complicated process with old-school lenders. In most cases, when applying for allotment loans, you don’t need to present as many documents as you do for traditional lenders. In many cases your proof of identification and basic personal information may suffice. Also, the application process usually takes minutes, making it perfect for urgent financial needs.
3. Competitive Annual Percentage Rate (APR)
Aside from competitive interest rates, companies like Access Loans do not charge hidden fees, and you can the benefits from a low Annual Percentage Rate (APR). Many lenders offer low interest rates but have so many hidden charges that you still end up paying a lot. Access Loans is transparent about how much you will pay every month.
4. Manageable Payment Terms
With Allotment Loans, if you can afford a higher salary deduction, you may opt for a shorter period; but if you want a smaller deduction, you can choose the longer period. This way, you can make sure that the loan remains manageable. In many cases you don’t pay any prepayment penalties or fees; therefore, if you are able to pay the loan before the loan term ends, you won’t get charged extra fees.
5. Improve Your Credit Score
For many, an unexpected expense means another point deduction on their credit score. This is not the case when you borrrow with Access Loans. Access Loans will not negatively impact your FICO credit score upon application, but they will report all loan payments history to the three major credit bureaus. On-time payments may improve your credit scores and can help you build your credit.
Learn more about allotment loans for employees by visiting Access Loans.
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