Installment loans answer your every urgent financing need for worthwhile purposes. Although we yearn for a life free of hassles and difficulties, there are life events and unfortunate circumstances which need to be attended to without delay. In these times, installment loans can give you highly accessible cash at agreeable payment terms.
What are Installment Loans?
In essence, installment loans provide an innovative financing solution which features easy application, hassle-free processing, speedy approval process, and flexible repayment terms. It is similar to a payday loan, but with terms and conditions which better meets the needs of borrowers with affordable interest rates and no hidden fees at all. We introduce you to a new financing solution with easy repayment terms and great customer service! If financial relief is what you seek, let our installment loans help you in times of great need.
How do Installment Loans Work?
Installment loans are a relatively brand new finance offering introduced by online loan lenders recently. This type of loan is unsecured which means that borrowers do not have to present collateral to apply or get approved for a loan. The amount that can be borrowed from installment loan lenders varies, but on average borrowers can request from as low as $200 up to $1500 loan instantly. What separates installment loans from payday loans and cash advances is the ease in repayment. A borrower can arrange for a longer and relatively more flexible repayment schedule which can last for more than a month. The duration of the loan and terms of repayment shall be predetermined upon approval, so borrowers are made aware of the fixed repayment amount that needs to be paid during the life of the loan.
With installment loans, borrower can arrange loan period as long as 3 months. Payday loan lenders only allow repayment up to 30 days. This may not be the most suitable repayment scheme for borrowers who are short of cash and may need their upcoming salary for other important financial obligations.
Another great benefit of installment loans is that it is highly convenient. Instead of making a single lump sum payment, a borrower can spread the total loan amount up to 6 repayment schedules, which in turn makes it easy for borrowers to pay on time. Payday loan lenders automatically charge late fees when the lump sum is not paid within a month, thus creating new problems for the borrowers. With installment loans, you do not have to worry about late fees, as the repayment amount which includes the principal and interest is easier to pay off in the first place.
Lastly, lenders that offer installment loans are more relaxed in terms of requirements and processing. Even people with bad credit or those with no credit history can get the amount they need in as fast as 24 hours! Thus,
Who Qualifies for Installment Loans?
As mentioned earlier, installment loans are unsecured in nature thus the requirements imposed by lenders are not as strict as those that are implemented by traditional lenders such as banks and credit unions as well as cash advance and payday loan lenders too. An interested individual only need to present minimum requirements to get approved of an installment loan.
- Proof of employment
- Above 18 years of age
- Proof of citizenship
- Bank Details
For one, the borrower needs to present proof of employment upon application. Pay stubs, certificate of employment or COE, and the telephone number of the employer or place of business are excellent examples of how a borrower can prove employment. These details essentially tell the lender that an interested borrower indeed has a source of income, which therefore gives him the ability to pay off the loan amount when approved. A borrowers needs to prove that he is working under the same company for three months or more. Business owners may also gain access to installment loans provided they are able to submit proof of income from their business too!
A borrower needs to be 18 years of age or older to become eligible for application. Minors are not allowed to apply for an installment loan.
Another requirement that installment loan lenders impose is that borrowers should present proof of US citizenship or legal residency. This documentation functions as a guarantee to lenders that the borrower will be able to pay off the total loan amount on the predetermined repayment schedule, and not bail on the loan altogether by leaving the country. It is impossible for tourists or illegal immigrants to get approved of an installment loan as their temporary status is perceived as a possible loss for lenders of installment loans.
Lastly, the borrower should present their bank details to the lender for faster processing and approval. Once a loan request is approved, the lenders will simply transfer the loan amount directly to the borrower’s bank account. The repayment amounts will then be deducted during the predetermined loan period, thus making it more convenient on the end of borrowers as well.
What can Installment Loans be Used For?
The amount approved can be used for a variety of purposes. Installment loans are usually used for emergency cases such as medical bills that need to be paid off right away, car repairs that need to be fixed, and utility bills that need to be covered to avoid further problems to borrowers.
Installment loans should be used wisely. For individuals with bad credit, it can save them from further delinquencies, unnecessary finance charges, and even expensive overdrafts. If used in good faith, an installment loan can even improve one’s credit rating too!
You can use an installment loan for any type of need, really! Lenders advise borrowers to put them to good use so customers can truly attain relief and financial freedom.