What Are Direct Lender Installment Loans?
Direct lender installment loans refer to a type of online loan that enables you to borrow a specified amount of money from a direct lender and repay with regularly scheduled installments. Unlike other types of revolving credit, for instance, credit cards, you must select the specific amount of funds you want before borrowing money.
Many people prefer direct lender installment loans over other loan types because they offer lower interest rates and better terms. Accessing these loans from direct lenders allows you to access various kinds of installment loans. For instance, you can get student, personal, mortgage, and auto installment loans depending on your needs.
How Installment Loans from Direct Lenders Work
Direct lender installment loan is a kind of short-term loan that you should pay back in fixed installments. The repayment period for such installment loans can range from months to years, depending on your installment loan terms provided by your direct lender. Installment loans from direct lenders don't involve third parties such as brokers. Instead, your lender will handle the processing, disbursement, and repayment procedures.
Typically, you are expected to make payments every month, and since these loans offer longer terms, they don't affect your budget too much. Every repayment made on an installment debt serves to pay off part of the principal amount and interest charged on loan.
How to Be Responsible with Installment Loans
Installment loans are formulated to help you cover unforeseen short-term expenses. Therefore, it is essential to practice responsible borrowing to avoid negative financial consequences and ensure you can access loans in the future. Here are three ways of ensuring you're accountable with installment loans.
1. Ensure you understand the cost of the installment loan
Direct lender online installment loans instant approval have the potential to have costly loan fees. Depending on our lender's terms, you may be expected to pay origination, administrative, annual, late payment, or other fees. Understanding the conditions of your direct lender installment loan helps you know all the required fees upfront.
2. Don't be afraid to make additional payments
On top of regularly scheduled payments, making extra payments can help you lower the overall cost of your direct lender installment loan. However, it is essential to check your loan terms to ensure your lender doesn't charge any prepayment penalties.
3. Make consistent scheduled payments
Installment loans are paid off using scheduled payments, and it is vital to know how many payment transactions are needed and how much each repayment should be. Also, ensure you know your repayment schedule to avoid additional fees, such as late payments.
How Long Is The Duration of an Installment Loan?
When you're taking out an installment loan, your direct lender will provide you with a loan limit, duration of the loan, APR/interest fees, and amount to be paid monthly. Direct lender online installment loans have varying repayment durations depending on the terms you'll agree with your lender.
The duration of installment loans generally ranges from 6 to 18 months. However, various types of online installment loans from direct lenders offer varying durations. For example, mortgage installment loans can have a duration of 15 to 30 years.
On the other, auto installment loans can mature after a period of 12 to 96 months, whereas personal installment loans can have a duration of up to 60 months. Depending on the loan amount, calculated interest, and monthly payment fee, the duration of your loan may be longer or shorter than the parameters stated above.
Is Weloans an Installment Loan Direct Lender?
Weloans is not a direct lender of installment loans; instead, it is a loan broker that connects you with numerous reputable lenders. We are committed to simplifying the whole loaning process for borrowers.
We handle all the legwork for you and help you avoid minor mistakes such as submitting incomplete information that may affect your chances of getting a loan. Additionally, we provide fast approval and funding from lenders to ensure you can get cash advance when you need them.
Weloans enables borrowers to access competitive interest rates by allowing them to compare the rates offered by different lenders. Also, we abide by all data and privacy laws and use high-level encryption to protect your personal information.
Regardless of the form of installment loan you want, you'll find a reliable and suitable lender by connecting with our extensive network of online lenders. This way, you can enjoy a higher potential of getting a loan that meets your requirements.
How Does WeLoans Compare?
|Why Use Us?|
|How much am I allowed to borrow?||Up to $35,000||No hidden fees or charges|
|What are typically the loan terms?||Up to 36 months||Various repayment options|
|Do lenders check my credit?||Yes||Soft search only|
|Do lenders take bad credit?||Yes||Bad credit considered|
|Chances of approval||Good||Quick turnaround|
|How to apply?||Apply online||No paperwork needed|
Benefits of Installment Loans from Direct Lenders
Receiving an installment loan from a direct lender comes with several benefits. They include:
1. Manageable payments
Direct lender installment loans are repaid using fixed monthly payments, which are manageable even if you are on a budget. Borrowers can even factor in their loan installments in their budget and plan better for their repayments.
2. Bad credit borrowers are considered
Direct lenders often consider factors other than your credit score when determining whether you qualify for an installment loan. Therefore, it is common to find direct lenders offering lenient credit score requirements. In such instances, your lender will look at your income, number of current debts, and employment history when reviewing your loan application.
3. Quick disbursement of funds
Acquiring an installment loan from a direct lender is typically a quick process. Once you submit the required information, your lender will make a quick decision and disburse the funds electronically to your bank account as soon as the same day.