Approximately 27 percent of American adults would need to borrow money or sell something if they faced an unexpected expense of $400 or more. But even if you’re among the larger US population who describe their current situation as financially stable, you can never be too sure about what’s around the next corner. Life can take a turn that affects you financially.
The good news is that there are plenty of options for people to access a quick loan. One option is to borrow money online. In particular, you can take an online installment loan.
But precisely what is an installment loan? Why should you choose this type of loan? How can you identify the right online installment loan provider for you?
If you’re asking yourself these questions, you’ve come to the right place. In this comprehensive guide, we tell you all you need to know about installment loans.
An installment loan is a general term referring to a variety of commercial and personal loans lenders extend to borrowers. The loan should be paid back with regularly scheduled installments or payments. Each of these installments represents a repayment of a portion of the borrowed amount plus interest on the total debt.
What Are the Advantages of Installment Loans?
Many people looking to borrow money online prefer installment loans for a variety of reasons. We discuss five of these reasons below.
Given that installment loans have a longer repayment schedule, lenders tend to provide a higher borrowing limit. For some top lenders, these loans range from $100 to $1000.
This flexible borrowing limit can be a huge benefit when in need of a considerable amount of money urgently. Besides, a bigger borrowing limit means that you don’t need to apply for multiple loans in the near future.
When applying for an installment loan, you have the option to do it either personally or online. The vast majority of people prefer to apply online because it’s convenient, fast, and gives you a prompt response. Provided you have a smartphone or computer and an internet connection, you can complete the application from the comfort of your office or home.
Once your application has been received, you can expect to receive payment in less than two weeks. Some installment loan lenders disburse funds the next business day. That means that if you need the money for an emergency, you can count on an installment to come to your rescue.
Another huge benefit of choosing installment loans is that most lenders aren’t too concerned about your credit rating when approving you for the loan. This means even borrowers with low credit scores or who’ve had financial troubles in the past may still be able to qualify. All you need is to have essential documents such as recent pay stubs, proof of billing, and so on.
Generally, banks and other conventional lenders operate during specific business hours. These hours are during the daytime. That means you can’t access their services 24/7.
On the other hand, online lenders provide round the clock service. If something happens and you happen to need money urgently, you online need to head online and apply for the loan.
Even if you have to wait till the following day to get the money disbursed, at least you’ll have the application part processed already.
Another huge plus with installment loans is that they provide highly flexible repayment terms. Instead of worrying about making a large payment at a go, installments are spread over a period of time that’s comfortable for you. This gives you enough time to begin working on your financial management.
Unlike title loans that need a free and clear title as collateral, installment loans need none. This is a huge plus if you have no car or other items to provide as collateral for the loan.
In recent years, online money lenders have increased considerably. How do you tell which lender is ideal for your needs? Here are a few guidelines.
Fake and dishonest online lenders do exist. Such lenders can scam you in many ways, leaving you in a worse situation than you were to start with. That’s why it’s so critical to verify a lender’s credibility before you entrust them with your personal information.
Use referrals from people you can trust who have used these services before. You can also read online reviews to see what previous customers have to say about a specific lender. If others say positive things about the lender, chances are they’re a good fit for you.
The top reason online installment loan lenders exist is to make things as easy and convenient for borrowers as possible. If a lender requires you to visit their offices aside from making an application, their services are anything but convenient. It means you must spend time and money to visit their office physically.
Choose a lender who allows you to do all you need online.
How clear is the lender’s communication? Do they genuinely seem interested in solving your problem, or are they just looking to make money from you?
Notice their response time too. A lender who takes hours or days to respond to your queries is no good.
The interest rates are a big determinant of the amount you’ll pay in the end. Don’t just accept any rate the lender is imposing. Research the market interest rate and compare it with theirs.
You may also want to visit a few online lenders to compare their rates. Opt for a deal that’s affordable for you.
An installment loan can be the perfect solution for you when you need immediate cash. These loans have numerous benefits that attract many people looking to borrow money online. Before applying for the loan, do your due diligence to make sure you’re working with the right lender.
Are you in need of cash urgently? Contact us today for an installment loan.