Why an Installment Loan is a Better Option in Mississippi

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Mississippi just recently brought home the bacon as the cheapest state to live in America. One could live out the American dream in a very affordable fashion in the Magnolia State.

Once you do move in, you get treated with its famous Southern charm and warm hospitality. It is an outdoor lover’s haven for its abundant forest areas, waterways, and proximity to the Gulf of Mexico.

But being the cheapest does not mean being free from emergency costs. Such times are when installment loans in Mississippi could be your best option, especially for situations that call for quick cash within the day.

While Mississippi’s average cost to own a house is over $419,000 cheaper than California, many customers use installment loans for house payments. It is likewise the case for car payments, the Hospitality State conversely being one of the most expensive states to own a vehicle.

Other emergency scenarios could compel you to resort to immediate access to cash. That could include medical bills, overdue utility bills, and improving one’s credit.

 

If it is just quick cash, why not go for a payday loan?

While payday loans in Mississippi could take as little as 15 minutes for one to get cash, its risks stack higher than that sole advantage. There is only so much you can borrow that needs to get paid in a short time. Plus, you get locked into a deal with costs equivalent to over 300% annual percentage rate for a mere two-week loan.

Instead of resorting to payday loans, you could take advantage of the benefits of an installment loan. For instance, installment loans in Mississippi could lend you $3,000 to $4,000 more than a payday loan.

If it is a matter of getting cash quick for a car purchase in Jackson or home repairs in Mound Bayou, you could get the money within the day. That is a minor tradeoff against 15 minutes, but with better benefits.

You could also arrange with the lender the ideal term for your fixed monthly payments or “installments.” Depending on who is your lender, that could be from six to 60 months. The APR gets significantly lower if you already have good credit and could be anywhere between 6% and 36%.

 

Does that mean I should have good credit to get an installment loan?

While a better APR correlates to a good credit score, that does not prohibit you from getting an installment loan. In the same way that payday loans do not require a credit score, installment loans are available for all customers regardless of their credit standing.

However, you could use installment loans as an opportunity to boost your credit score. All you need to do is build a positive credit history through on-time repayments. Specifically, you will be improving on 35% of your credit score when you make your repayments on time.

Moreover, allowing yourself to repay your loan on time over a more extended period adds to your credit history. That is equivalent to boosting your credit score to another 15%. Of course, this would result in improving your chances of getting better loan terms, lower interest rates, and even incentives or discounts.

Finally, installment loans could help you diversify your credit types. When you manage to repay your loans every time, your credit score could go up to another 10%.

Mississippi might be having some economic challenges at present. But considering its powerhouse agriculture, manufacturing, and mining industries, no one can discount simply the Hospitality State.

Thus, there is plenty of opportunities to maximize Mississippi’s economic potential with the help of installment loans. These loans could even help boost startups in the sectors of technology and, most notably, tourism. There is much to draw business here, and the great Mississippi River, the Blues, and Elvis are just a few.

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