When you’re looking for a loan, you have a lot of options available. Personal loans, business loans, and payday loans are popular, but there aren’t the only options you have.
Online installment loans have a variety of benefits, but not a lot of people are aware they exist. If you want to learn more about how these kinds of loans can help you, read on.
What Are Installment Loans?
When you have an installment loan, you borrow a specific amount from a lender and agree to pay the loan back (along with interest) in a series of monthly payments.
You may already have an installment loan and not even know it. Many car loans, student loans, and even home equity loans are classified as installment loans.
The only difference with an installment loan than other loans is the interest rate. It’s fixed from the beginning, and won’t change throughout your repayment period.
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Credit Score Loan Size/Amount Loan Term APR Origination Fee All can apply $100 - $15,000 1 - 60 4.99% - 1.386% Varies by lenderCredit ScoreAll can applyLoan Size/Amount$100 - $15,000Loan Term1 - 60APR4.99% - 1.386%Origination FeeVaries by lender
Benefits Of Installment Loans
Now that you know what an installment loan is, you may be interested in what they can do for you.
This kind of loan has a variety of benefits, and they could be your key to a more stable financial future. If you aren’t convinced that an installment loan can help you, you’ll be eager to request some of your own by the end of this post.
Small Loan Amounts
When some people request loans, they need a high amount. They may need to finance a car or a home, but some people may need loans for smaller purchases.
Maybe you need loans to help cover the bills until your next big payday. Or you need to make an emergency repair but don’t have the money.
An installment loan can cover whatever amount you’ll need. Whether you need a few hundred dollars or a few thousand, you can find a loan that suits your financial needs.
It’s estimated that nearly one-third of Americans have a credit score below 601. Anything below 601 is considered a bad credit score, and people with bad scores can have trouble getting loans through banks.
If you’ve had trouble getting loans in the past, you should look into getting installment loans. Many installment lenders are willing to give loans to people with low credit scores.
In some cases, lenders may not even run a credit check. They’d be willing to give someone a loan as long as they have proof of income or a valid bank account in the United States.
The loan you have could even help improve your credit score. If you make your payments on time and pay off your loan without any extensions, you’ll see your score improve.
Get Approved Fast
If you get a loan from a bank, the approval process can take a long time. You may have to wait a few days, and for larger loan amounts or business loans, the process could take weeks.
When you need money fast, you can’t wait around for a lender’s approval. If you look for installment loans, the approval process is very fast. You may be able to have your loan approved in a matter of minutes!
If you find loans online and are approved, the cash can be deposited in your bank account. You’ll be able to make your purchase or make a payment the same day you request the loan.
If you’re getting a loan at a traditional bank, you shouldn’t expect to walk in off the street and get a loan.
Some lenders are going to want pay stubs and proof of income. If you’re getting a loan for business purposes, they may even want letters of recommendations from people or information from your business partners.
Installment loans won’t require a lot of paperwork or documentation. As long as you’re over the age of 18, are a US citizen, and have a valid bank account you’re good to go.
Short Payment Plan
Some people will spend years paying off their loans. Interest will keep adding up, and eventually, they can find themselves paying more in interest than the actual amount of the loan.
One of the benefits of these loans is their short lives. Some can even be set up to be paid off in 90 or 120 days.
You won’t have to worry about spending years paying off your loans. You’ll have your money and pay everything off fast.
If you get a loan for your car, the money can only go towards your car. The same goes for loans for your home.
Installment loans don’t need to be spent on a certain thing, you have the freedom to use them as you see fit.
Did you originally get a loan to pay for a car, but you had an unexpected bill pop up? Feel free to put some of your installment money towards that bill or whatever else you want.
Great For Last Minute Costs
Unexpected expenses are a part of life. Cars need to be fixed, home can get damaged, and people get sick. You may not have the money now, but installment loans can get you what you need in a matter of minutes.
These loans don’t just have to be for emergencies. They can also be great for when you simply need money.
Did your kid just tell you that they need a dress or suit for their big dance that’s in two days? Did you see the perfect couch that’s on sale? Use an installment loan to pay for big purchases!
As you can see, installment loans can be the answer to some tough financial questions. They’re simple to qualify for, can be paid back in a short amount of time, and can help you when you’re in a tight spot.
Do you want an installment loan of your own? Bonsai Finance can help you find the right lender so request now to get started.