Online Instant Installment Loans
Online instant installment loans are a great way for those in a financial fix to settle their unexpected expenses. You can use this type of loan for a wide range of reasons, including medical emergency bills, home improvement or renovation, vehicle registration or maintenance. You can even take out an online instant installment loan to pay for your tuition.
If you have a terrible credit score, an online instant installment loan gives you an opportunity to access quick funds to resolve your financial challenges. Compared to other loan types, the application process is very fast and smooth.
How Do Instant Installment Loans Work
Instant installment loans are offered by online lenders with varying interest rates. As with payday loans and cash advance, they are short-term loans designed for those looking for quick loans to pay off upcoming bills. The repayment arrangement or schedule is very flexible. Instead of repaying the requested amount with interest in a lump sum, you can spread the repayment within 12-24 months depending on your agreement with your selected lender.
Benefits of Instant Installment Loans
There are so many benefits of Instant installment loans, including:
Soft Credit check
One of the biggest benefits of applying for an online installment loan is that it doesn't require a good credit score. In fact, lenders will only conduct a soft credit check to determine your creditworthiness. However, you must meet other eligibility requirements as stipulated by the lender.
Another benefit of taking out an online installation loan is that it doesn't require borrowers to deposit collateral. Unlike title loans near me where borrowers deposit their vehicle title to the lender, the narrative is different when it comes to online installment loans.
The repayment is spread monthly until you finish repaying the amount you collected. This is very different from a payday loan where the lender expects you to repay the borrowed amount plus interest in one lump sum.
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How to Get Instant Approval for Online Installment Loans
Getting instant approval for online installment loans is not a difficult process. All you need to do is to follow this step-by-step guide:
Before you even start the process, you need to check whether or not you are eligible for an online installment loan. Most lenders in the US require that:
- You attain at least 18 years of age before applying for the loan.
- You're a resident of the US.
- You have a checking account with any of the banks in the country.
- You have a verifiable source of income.
- You possess a means of identification like a driver's license or social security number.
Shop for an installment loan lender
After checking the eligibility criteria and you're qualified for an online installment loan, the next step is to shop for a credible online lender. With hundreds of lenders operating in the United States loan market, it can be pretty difficult for you to find or pick a lender that understands your financial situation. Before settling for a lender, make sure you check the lender's track record and testimonial page. This will give you the information you need to decide whether to work with the lender or not.
Submit your application
Once you find a suitable lender, the next step is to peruse the lender's terms and conditions and then proceed to submit your loan application. Fill out the loan application form with your correct background information so that your application will not be rejected. The lender will conduct a credit score to determine your creditworthiness.
If your application is approved by the lender, you will receive the requested funds directly into your bank account on the same day or the next working day.
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Online Payday Loan vs. Online Installment Loan
Although online payday loans and online installment loans offer a great way for borrowers to obtain quick funds to pay off upcoming bills, they often differ on several fronts.
Payday loans are short-term loans that you can access when you are in a fix and need emergency funds to settle on expected expenses. They are usually repaid in one lump sum from the next paycheck. The interest rate is typically 450% and the repayment period is usually set at between one to two weeks. Lenders usually perform a soft credit check on borrowers before approving a loan request.
On the other hand, online installment loans are repaid in increments over multiple months or years. The interest rate and repayment period of online installment loans are typically 36% and 3-24 months respectively. Borrowers will undergo a hard credit check by the online lender before approving the loan request.
How Do Online Installment Loans Affect My Credit
If you have a bad credit score, you can take out an online installment loan to repair your terrible credit rating. Remember, failure to make timely payments will hurt your credit history. Online lenders, banks, and other traditional financial institutions use a borrower's credit score to determine whether or not the borrower will repay a loan in record time. If you continually fail to repay a loan, a lender may be compelled to report your actions to the three credit bureaus, which will affect your credit score in the long run.