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Pros
- Ease of use.
- Simple application process.
- Large number of trustworthy lenders.
- No fees.
- Flexible loan terms.
- High security.
Cons
Not available in some state.
Small maximum amount to borrow.
No pre-qualification.
Pros
- Long-lasting presence online.
- Good standing.
- Customized offers based on applicants' individual needs.
- A convenient website with easy registration.
Cons
Not a direct lender.
LoansAngel hides the WHOis information.
The FAQ section could be more extensive.
Pros
- Free to use.
- Website's good quality and intuitive navigation.
- Updated SSL encryption.
- They don't check financial health.
- Flexible conditions for different borrowers.
Cons
Sometimes, customers have to wait for money for up to two days.
Text messaging spam.
Pros
- Accepts first-time credit applicants.
- Loans can be funded one business day after the borrower agrees with a loan offer.
- Credit card consolidation loans provide direct payment to creditors.
- Borrowers can select and adjust their payment date.
Cons
An origination fee may be charged.
Borrowers can only select between two repayment terms.
There is no debt management mobile app.
Pros
- One-stop solution for finding all lenders.
- Easy 10-minute process.
- Fast transfers.
- Easy to navigate for new users.
Cons
Not a direct lender.
In case of late payments, Funds Joy will report a lower credit score to the credit agency.
A borrower must earn at least $800 per month to be eligible for a loan.
Pros
- No additional fees.
- Rates are competitive among available internet loan lenders.
- Provides a 0.5 percentage point rate reduction for setting up autopay.
- Satisfaction-guarantee service.
Cons
There is no pre-qualification option on its website.
Some lenders may ask for several years of credit history.
ExtraLend isn't the direct lender, which makes the process lengthy.
Pros
Cons
Pros
Cons
Pros
Cons
Pros
- The Company provides commission-free American stock and EFT trading without inactivity and withdrawal fees.
- The process of creating an account is seamless, digital, and quick.
- The support center offers relevant and helpful answers.
Cons
The Company is only available to American residents.
There are limited products.
The research tools are not advanced.
Pros
Cons
Pros
Cons
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Compare Your Installment Loan Options
What is an installment loan?
The term "installment loan" is not often used, so many people are confused when they first hear about it. However, in most cases some type of installment loan is used. These include auto loans, mortgages, personal loans, and student loans. Installment loan lenders include banks, credit unions and online lending agencies.
Installment loans take the form of a sum of money that is withdrawn in one lump sum. However, repayment is divided into several installments depending on the agreement made with the lender.
Unlike a credit card or other types of loans, when applying for an installment loan you have to decide how much you want to borrow. The repayment plan generally involves monthly payments. These payments are called installment payments, hence the name installment loan. However, a different plan can be agreed upon with the lending institution if this is to the liking of both parties. The advantage of these loans is that they have relatively long repayment periods. Of course, they can vary depending on the lending institution. On average, however, they are between two and seven years. In some cases, and for large amounts, they can be as long as 30 years. These loans have a fixed repayment amount.
Alternatives to installment loans
Installment loans are a good option when you need a large sum of money. For example, if you need to buy a car, pay college tuition or consolidate past debts, you should consider applying for an installment loan. However, if you have unexpected expenses, you should consider other solutions. Let's say you have to go to the emergency room for a minor surgery and need to cover a medical expense of no more than a few hundred dollars. In this case, you do not need to apply for an installment loan online or offline. Let's see what can be done:
- For small amounts of money, you can always turn to friends or relatives. Most of us find this option awkward and stressful. On the one hand, we don't want to be seen as someone who has money problems. On the other, we know that money can cause problems even in the best of friendships. However, it is worth thinking about, because friends will not ask you to pay interest. To make sure that money does not stay between you, work out a repayment plan and put it in writing.
- Find a side job. The idea of giving up your free time is not appealing. But it is the best way to avoid the problems that might arise when you take out a loan. Think about what you like to do and see if you can earn a little more money that way. For example, you could walk dogs, drive for a car sharing service, etc.
- Find out about nonprofit organizations that offer financial assistance. We are not talking about charity. Some nonprofit organizations offer small, short-term loans at low interest rates to help people in need.
- Ask about receiving a portion of your salary up front. Check to see if your company offers this option. If it does, it is one of the best solutions to your problem.
- Short-term loans. Nowadays it is possible to apply for a loan online. These are also small short-term loans and are fairly easy to obtain. However, make sure you can repay them quickly, as these loans carry high interest charges if you are late in making payments, which can make your situation worse.
Advantages of installment loans
If you need a large sum of money in one lump sum, installment loans are one of the best options. Today you can also apply for installment loans online, which is one of the main advantages for those who need money quickly and want to avoid the hassle of going to lenders' offices. They are also popular because they have long payment terms and fixed installments. But let's look at the other advantages of installment loans:
- Nowadays we are all very busy and want to complete all the paperwork as quickly and conveniently as possible. Installment loans are one of the most convenient options because it is no longer necessary to go to the bank or the lending institution. The entire application process can be completed online and, in many cases, these are online installment loans with instant approval.
- Another advantage of installment loans is that you can apply for the exact amount you need, no more and no less.
- These loans allow you to make major purchases. When you apply for an installment loan, you get a large sum of money that is paid back over several years, or even decades if you are buying a house. They are ideal for people who want to make large investments and resolve important existential issues.
- When you take out an installment loan, you sign a contract that stipulates the amount of the monthly installment. This amount remains unchanged throughout the life of the loan, and the lender has neither the right nor the ability to change it.
- Since these are long-term loans, lenders will not pressure you for early repayment.
Apply for an installment loan online
Direct lenders offer the option of applying for an installment loan online. Nowadays, most people apply for this type of loan for convenience. You need to find the one best suited to you and fill out an online application. In most cases, lenders will also ask you for other documents, such as a copy of your ID, proof of income and your address.
These are often installment loans with no credit check. They are therefore a good option for those who are looking for an installment loan with bad credit. Direct lenders are often not interested in your financial history. What they are interested in is your current and future creditworthiness. That is why they ask you to prove that your income and employment situation are stable.
The application process is generally very quick. This is a big difference from traditional loans. The waiting period for approval of an installment loan at the bank can sometimes be as long as a month. With online loans, the entire process can be completed in a matter of minutes.
Direct lenders generally do not care how you use the money. This means you can use it for anything you don't want: paying off credit card debt, buying a car, paying school fees, taking an expensive vacation, etc. It is up to you to decide. It is another way in which direct lenders differ from banks, which usually give you money for something tangible, and you have to spend it on that.
Tips for getting an installment loan
As we have already mentioned, applying for an installment loan is relatively simple. First, you need to use the Internet to find the lending institution best suited to your needs. Then, on each lending institution's website, you will find an online form that you must fill out and submit. Most will also ask you for additional documentation.
Once you have submitted everything, you will be asked to check your application. If your documents are in order, the verification process will take only a minute or two. The lending institution will then take the time to review your documents. Once the verification is complete, the lending institution will inform you of the status of your application. Generally, if everything is in order, the approval process is also fairly quick. Direct lenders may sometimes ask for clarification or additional documents, which can prolong the process. However, in all cases, the decision is made quickly and the money is available within one or two working days.
Another option is to Google information about the best installment loans near me. If you find a lending institution that is right for you, visit its office and apply for the loan on the spot. Once the application is approved, you will need to check and review all the documents before you receive the money.
Conditions for obtaining an installment loan
When applying for an installment loan, you must complete and submit the online form. In addition, lenders usually ask for additional documents to make sure you are eligible for the loan. Here are the most frequently requested documents.
- Proof of identity. This can be an ID card, passport, driver's license or any other document that shows you are 18 years of age or older.
- Proof of your employment status and a regular source of income.
- A valid address.
- A valid checking account.
- An active telephone number.
It is essential to specify that some lenders may wish to conduct a simplified credit check. This is often not the case, as they are more interested in your current creditworthiness than in whether or not you have had financial problems in the past. However, you can do this to be on the safe side.
Final thoughts
Installment loans allow you to divide your payments into equal monthly installments, which explains their popularity. However, if you are considering applying for this type of loan, make sure you fully understand the terms and conditions offered by the lending institution. This will increase your chances of finding the loan that best suits your needs.
Frequently Asked Questions
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Can You Get an Installment Loan With Bad Credit?
As previously discussed, it's worth reiterating that direct lenders typically do not conduct extensive credit score checks, as they may prioritize other aspects of your financial situation. So, indeed, there are options for bad credit installment loans available. However, it's essential to understand that the concept of guaranteed loans is not a reality. No one can guarantee that your loan application will be approved, even if you can demonstrate a good credit history. Similarly, there are no guaranteed installment loans specifically designed for individuals with bad credit. Loan approval is subject to various factors, and while your credit score may not be the sole focus, other aspects of your financial profile will be taken into account during the lending process. -
How Much Can Installment Loans Cost
Determining the specific loan amount and repayment terms for an installment loan isn't straightforward, as it hinges on the lender and the loan agreement you establish. The loan amount can vary significantly, spanning from $1,000 to $100,000, and repayment typically occurs through monthly installments extended over several years. The interest rates and fees associated with the loan are contingent on the lender and the terms you agree upon in the loan contract. It's imperative to carefully review and comprehend the terms and conditions before proceeding with an installment loan to ensure it aligns with your financial needs and capabilities. -
How to Calculate the Installment Loan Correctly
The most efficient and straightforward method for calculating installment loans is by utilizing an online loan calculator. All you need to do is input the loan amount, interest rate, and the duration in months or years over which you plan to repay the loan. Afterward, clicking the calculate button will provide you with the precise monthly payment amount, making it a convenient tool to understand and plan your loan repayment. -
How Many Installment Loans are Acceptable For One Person
There is typically no specific limit on the number of installment loans a person can have simultaneously. However, it's essential to exercise caution when considering multiple installment loans, especially since these loans often involve substantial sums of money. Even though the repayment period is extended over several years, managing multiple loans simultaneously can increase your overall debt burden and potentially lead to financial strain. It's crucial to evaluate your financial capacity and responsibilities carefully before taking on multiple installment loans to avoid overextending your finances and potentially encountering difficulties in repayment. -
What are the benefits of an installment loan?
One of the primary advantages of an installment loan is the predictability it offers in terms of monthly payments. Knowing precisely how much you'll be paying each month makes it easier to budget and manage your finances effectively. Additionally, installment loans often come with lower interest rates compared to other forms of borrowing, such as payday loans or credit cards. This can result in cost savings by reducing the amount you pay in interest charges over the life of the loan. -
What are the drawbacks of an installment loan?
One of the primary disadvantages of an installment loan is the potential difficulty in qualifying if you have a poor credit history. Lenders often consider credit scores when approving applicants, which can be a barrier for those with less-than-ideal credit.
Furthermore, some lenders may impose additional costs, such as origination fees or prepayment penalties, which can increase the overall cost of the loan and impact its affordability. It's essential to thoroughly review the terms and conditions of any installment loan offer and assess whether it aligns with your financial circumstances and repayment capabilities.
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What are some alternatives to installment loans?
There are several alternatives to installment loans that you may want to consider, depending on your needs. For example, if you're looking to consolidate debt, you may want to consider a balance transfer credit card or a home equity loan. If you're looking to make home improvements, you may want to consider a home equity line of credit. And if you're facing an unexpected expense, you may want to consider borrowing from friends or family or using a credit card with a 0% introductory APR.
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