Payday loans are aggressive, short-term forms of credit that require borrowers to repay the entire loan amount plus very high-interest fees on their very next payday.
If a borrower is unable to pay off the entire loan plus applicable fees and interest by their next payday, new finance charges are added to the loan and the principal borrowed amount is rolled over again to the next payday.
As a result, payday loans can become extremely expensive extremely quickly, especially when borrowers are unable to repay them on time, as they continue rolling over from payday to payday, exponentially increasing.
This cycle usually results in substantial finance fees and the borrower falling further into debt.
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Even worse, payday loan finance fees can’t be avoided because borrowers do not pay off the principal or borrowed amount until the very end of a loan, which is called a balloon payment. Therefore, payday loan agreements often include a full finance charge in the final balloon payment, without an option of reducing interest by paying off the loan early.
-Pay down the principal with each payment
-Have a fixed number of payments
-Have no hidden fees
-Contain easy to understand loan terms
-Have no prepayment penalties
-Allow for multiple payment options
At Uprova.com we believe it’s time to bring the “Subprime” and “Deep Subprime” borrowers out of the shadows. Uprova cares about finding a credit solution for these hundreds of millions of Americans with “Subprime” or “Deep Subprime” credit scores.
We’re talking about a service that, aside from predatory players, is nonexistent for 21.2% of Americans. Talk about an underserved market! The question is, how do you make it work for both the lender and the borrower?
Our vision is to assist “Subprime” and “Deep Subprime” borrowers with climbing out of debt, by providing lending options that don’t feast on their misfortune. Instead, we want our options to propel these borrowers forward, out of financial hardship.
Our alternative to traditional payday loans is Uprova’s interest-based installment loan. These installment loans have similar eligibility requirements as payday loans, but provide borrowers with reasonable rates, flexible terms, and more lenient repayment structures. Additionally, these installment loans provide benefits to borrowers such as reported credit activity to the relevant credit bureaus, which helps build positive credit history when payments are made on time.
Uprova.com’s installment loans help borrowers overcome their short-term financial obstacles, as well as assist them in building up alternative credit scores, to avoid being in a similar situation in the future. Improving an alternative credit score can potentially earn a borrower credibility with lenders who use those scores to underwrite their loans, providing a better opportunity to receive more substantial loans in the future. Those who qualify for these options should consider installment loans as a much better alternative to payday loans.