What Are Installment Loans?
An installment loan is a sum of up to $5,000 that you repay in fixed monthly installments. The sum repaid is made of the amount you borrow, plus interest. The maximum loan amount and exact terms vary by state. Lenders offering unsecured installment loans online advertise easy approval and flexible repayment plans. Online installment loans are available online from both direct lenders and through lending networks. Similar to a payday cash advance, an installment loan is a short-term financial solution.
Can I Get a Same-Day Installment Loan?
You can typically get the funds for your installment loan within one business day. In some cases, you might receive your money sooner. It’s a matter of application time and processing speed. For instance, if you apply and get approved by noon, say around 10:00 or 11:00 AM on a workday, the funds might reach your checking account the same day. Otherwise, the lender will process your loan on the next business day. That is if you get approved. All requests submitted after working hours or on weekends and official holidays are processed on the next workday.
Can I Access Installment Loans with a Bad Credit Score?
Installment loans with bad credit are possible, depending on the lender. Many lending services advertise loans with no credit check. Be wary of loan ads that sound too good to be true. Most lenders do check your credit history.
Banks and credit unions will pull your full credit report from the three main credit bureaus (TransUnion, Equifax, Experian). That can affect your credit. With them, your chances of getting an unsecured installment loan with poor credit are low. On the other hand, direct lenders are more likely to do a soft credit check through alternative means that do not affect your score. They are more likely to approve your request, even with a less-than-perfect credit score.
A guaranteed loan with no credit check will typically come with a higher interest rate. Make sure you fully understand the conditions of the contract before signing it.
What Are the Benefits of Installment Loans?
Installment loans are a convenient source for applicants who are short on cash. The main advantages of installment loans include:
- Fixed monthly rates. Your expenses are more predictable with a loan you can pay back monthly, and it’s easy to set up a repayment plan;
- Larger loan amounts. Payday loans, for example, allow you to borrow up to $1,000. With installment loans, you could borrow up to $5,000 or even more, depending on state limitations and the lender;
- Fast funding. In case of approval, you can get your money as soon as within one business day;
- You can increase your credit score. By repaying your loan on time, you can positively influence your credit;
- No prepayment penalty. Most lenders don’t charge you extra fees for paying off your loan in advance. Check your loan agreement to see the conditions that apply to your case.
What Are the Drawbacks of Installment Loans?
Installment loans are not ideal for all potential customers. Some alternative loans may be more suitable for your current financial distress. Before committing to an installment loan, make sure you are aware of its disadvantages:
- High interest. Depending on the lender, an installment loan may have high rates, especially if your credit score is not to your advantage.
- Income verification. Some lenders require you to be employed for over three months and present pay stubs from your job. Additional verification may apply, too, as well as a specific wage requirement.
- Unnecessary expenses. The possibility of borrowing more than you may need is tempting. It often leads to excessive spending and repayment difficulties.
- Credit score may be affected. If you have issues paying back your debt on time, your credit score may be negatively influenced.
How Can I Qualify for an Installment Loan?
To be eligible for an installment loan, you must meet a set of minimum requirements:
- Be 18 or older and present valid identification to prove it;
- Be a US citizen or permanent resident;
- Hold a steady job;
- Have an active checking account;
- Provide valid contact details (home address, phone number, email address).
Your lender may ask for more information and verification. Some requirements may vary depending on state regulations.
What Do I Need to Consider Before Taking an Installment Loan?
Although an installment loan is a short-term financial solution, it is a long-term commitment. Before grabbing the first offer you see, ask yourself:
1. Can you afford to repay your debt on time? If you have upcoming expenses that you are aware of, taking a loan may not be the best idea. Check your debt-to-income ratio to decide.
2. Do you trust the lender you are borrowing from? It’s worth reading some reviews about your lender. Make sure you are in contact with a legit business.
3. Have you considered alternative loans? If you need a small amount of money fast, a payday loan may work better. The repayment term is on your next payday so that you will close your debt sooner. If you need to buy a car, an auto loan might suit you better.
Yes, some lenders may offer you a loan without checking your credit history. These loans tend to have higher interest rates. Make sure you read all the loan details before signing the contract.
Yes, delaying payments or not paying your loan will affect your credit score.
It’s possible to have more installment loans at the same time. For instance, paying off a mortgage and a smaller installment loan is a common scenario.
Fill out a loan request via 1FirstCashAdvance. If you get approved for a personal installment loan, you will receive a reply shortly. This is an alternative to looking for direct lenders one by one and submitting an application form with each of them.
Finding the best option depends on your specific needs. Once you have identified them, submit your application online and see what you qualify for.
Why Apply for an Installment Loan through Us?
1FirstCashAdvance offers you security. Our advantages:
Data protection. Your personal details are safe throughout the entire application process. No marketing cold calls. Your data remains confidential. Legit lenders. We only share your request with reputable, trustworthy loan providers. Online application 24/7. Applying online is possible at any convenient time for you.GET CASH NOW!