Installment loans are basically "personal" loans which are repaid over a longer period of time if compared to payday loans and can be used for any personal expenses.
There are fixed numbers of payment schedules (monthly installments) in which a person who has taken the loan has to pay it out, the term, interest rate, repayment schedules and fees vary from lender to lender.
Most installment loans come in amounts from $500 to $3000. Another advantage of such personal loans is that the interest rate is usually lower than the one of payday loans.
Where to get an installment loan?
There are several options where one can get an installment loan: visiting a local bank or find a direct lender (online or near you).
- You can take the installment loans from the bank where you have the account. Also, it is important to check the interest rate of the bank from which you are taking the loan; it hugely impacts the installment amount.
- There are online direct lenders also present. They offer various cash loans including installment, however, finding a good lender might take some time which makes sense if you want to avoid too high interest rates.
Benefits of borrowing from online lenders vs banks
- When you are in urgent need of money, you don't have to wait; you will get the cash in hand instantly.
- They will not ask you the purpose why you are taking the money. Thus, you can use the money and you want.
- They give you enough time to repay the amount. Mostly the time remains between 3 to 18 months.
- You can opt for different methods for repayment of the amount.
- Some lenders don't perform credit checks, while others do a soft credit check before approving the loan.
While talking installment loans for bad credit from anyone be careful and read all the terms and conditions carefully. It is good to take the loan from a reliable bank. If you do not have an account in the same bank, get it open as it takes very less time and submits the application for the loan.
How to qualify for an installment loan?
- The lender before lending the money to borrower performs the thorough verification of the person and prime factor that impacts the decision is the credit score of the borrower. Thus, at first the lender verifies the credit score of loan borrow and after finding it satisfactory, it proceeds to the next step.
- After this, the lender may ask several questions to the borrower to ensure that the borrower is lending the money for the right purpose and he/she is willing to pay the amount.
- The amount that will be given as the loan and its interest rate depends on the lender and the income of the person. His debt status is also checked by the lender.
What does instant approval mean?
- Instant approval of the loan with online lenders means you do not have to answer any question. You don't have to wait for document approval. You are not required to verify your bank history and share numbers of documents.
- There are various options present for taking a loan from these lenders like you can keep something in my mortgage to take a loan on that behalf. It could be some of your jewelry, car, home or anything that has any value.
- If you do not have anything to keep as a mortgage, you can apply for a different type of loans as well.
How to find a good lender of installment loans online?
- If you are taking this type of loan for the first time and don't know any lender, then take the help of the internet to find one. Search on Google for installment loans online and you will a list of lenders offering loans. Contact any of them or talk to as many as you can to find the best according to your requirement. Share the details and you will get the loan instantly.
Though you don't get a huge sum of money from online loan providers, but they offer a decent amount which is enough to complete some urgent work.
- The other way of finding a good lender is taking reference from friends and relative. This is the best way of finding something as you get only the reliable names through reference.
When you succeed to find some good lenders, talk to them to get to know the process and get the installment loans online and finish your work.
Nevertheless, while taking loan do not forget to read the terms and conditions carefully and thoroughly to avoid any discrepancy in the future.