The lending industry is always growing and changing. One of the latest trends gaining momentum is that of rent loans.
Rent loans are exactly what they sound like. Several startup companies have emerged catering specifically to young professionals and recent graduates who need a little bit extra to cover rent.
These are short term and small dollar loans with high interest, which makes them sound a little like payday loans. Are they different at all?
Rent Loans vs. Payday Loans
Most people work a job, and get paid on a regular basis. For some people that basis is more regular than others. Many younger professionals don’t have an assured payday, and may not know precisely where their next check is coming.
This was the starting point for rent loans. The idea to work with people who had money coming, but just didn’t currently have money.
Once again, this is not much different from payday loans.
The verbiage has been changed, but the only real difference is the marketing. Payday loans focus on one demographic, and rent loans another.
Put a pig in a suit and it’s still a pig. A rent loan is just a different suit!
Installment Loans a Safer Choice
Unlike a rent loan, installment loans are not a trend, a fad, or a passing craze. Installment loans are the bedrock of the lending industry, and the safest form of borrowing.
Installment loans feature lock-in interest rates. This way you know exactly how much your payments will be, and when each one is due. There are no surprises, the entire life of the loan is written out in plain English for you to approve before you sign the contract.
Why take a risk on something old in a new suit? Stick with installment loans, proven by time to be the most reliable type of loan.