Installment Loans Direct Lenders
There are many types of loans available for people who have personal financial needs. Among the most convenient and beneficial loans, you can apply for are installment loans. Installment loans direct lenders provide borrowers with an instant source of cash, which they enjoy more time to repay. As opposed to other types of loans (such as bank or payday loans), installment loans offer friendly lending terms, flexible repayment periods, and higher approval rates.
Installment loans are given directly to you from the lender, making it easier for you to coordinate details of the loan according to your best interests. In addition, installment loans can be used in the manner that you deem necessary. As opposed to mortgages, student loans, or car loans, installment loans are personal loans that don’t limit how you can use the funds. And because the application process for installment loans is faster and more efficient than other loan options, borrowers often find this path convenient for their financial needs.
When applying for an installment loan, there are important factors you should consider. From finding the right lender to negotiating terms of the loan, you should be aware of how to find the best loan that will meet your personal financial needs.
What are installment loans?
By definition, an installment loan is a type of personal loan that is provided directly to you from a lender. Rather than using a third party, installment loans are directly issued to you and you’re expected to repay them in regular, monthly installments.
Depending on the amount borrowed and the terms of the loan, the amount is repaid over the course of several months or even years. What makes online installment loans direct lenders a popular option is that you have more time to repay the loan amount. This gives you more flexibility as compared to payday loans or same day loans that are often deducted from your next paycheck.
In addition, installment loan amounts and repayment periods are determined by the interest rate, fees, credit score, and other factors that the lender considers. You often have the flexibility of designing a repayment plan that fits your budget and financial needs. And because installment loans are often available in a short amount of time, this option is a suitable alternative to complex bank loans.
Indeed, when looking for amounts between $500-$5000, an installment loan gives you faster and more efficient access. Most lenders also consider applications with a lower credit score (or bad credit altogether). This means that you won’t be locked out of the funds you need for your financial needs when applying for an installment loan.
To qualify for an installment loan, all you need to show is a steady and reliable income. Your income levels should demonstrate your ability to repay the monthly installments of the loan over time. Many lenders will work with you to design a loan repayment plan that fits your budget and income. You should also meet the following basic criteria to qualify for an installment loan.
- Be at least 18 years of age
- A U.S citizen or permanent resident
- No outstanding fast cash loan with another lender in the recent past
Understanding Installment Loans Direct Lenders and how to find them
Many people often struggle with finding the best lender for an installment loan. Some borrowers tend to rush for the first loan they can find, while others have difficulty sieving through multiple lenders. Because you will often deal directly with a lender, it is important to identify a financial institution that meets your needs.
Remember that installment loans may take months or even years to fully pay off. If you lock yourself into a loan with the wrong lender, you may end up incurring high interest rates or higher installment amounts.
Luckily, resources such as Bonsai Finance are here to help. At Bonsai, we connect you with our network of installment loan lenders. We make the process much easier and convenient. In fact, by filling only one application, we connect you with multiple online installment loans direct lenders who meet your specific needs. It takes just a few minutes for you to find a lender you can negotiate the terms of your loan with.
Direct lenders for installment loans vary widely. Some lenders operate locally and you can easily visit their offices to apply for a loan. Other lenders are available online and they operate in multiple states across the country.
When choosing a lender, there are many important factors to consider.
Most importantly, you should look for a lender who is reputable and licensed to offer installment loans. Because it can be tricky and time-consuming to verify every lender you’re considering, working with Bonsai Finance saves you the time and risk of ending up with the wrong lender.
At Bonsai, we’re financial experts in the industry and our network of lenders has been scrutinized for integrity. When we match you with an installment loan provider, we ensure that they most closely meet your financial needs.
2. Customer satisfaction
You should also choose lenders who have a history of customer satisfaction. Because you’ll be working closely with the lender throughout the loan period, they should always be prepared to address your concerns and to work with you when addressing an upcoming issues.
3. Terms of the loan
You should also note that not all installment loans are set in stone. In fact, any reputable lender will work with you to adjust the repayment period, monthly payment amounts, and interest rates.
Depending on your income levels and the amount of money you wish to borrow, your lender should work with you to develop flexible installment loan terms.
Why get an installment loan?
If you have an immediate financial need, you may be wondering if an installment loan is the right option for you. When compared to other loan options out there, installment loans provide unique benefits to borrowers.
1. Immediate access to the cash you need
One of the most important benefits of installment loans is that you get quick access to cash when you need it. Regardless of how well prepared you may be, emergencies are always likely to happen. Your car my break down at the most inconveniencing time, or you may need to top up to pay off a credit card.
Other borrowers also use installment loans to catch up on mortgage payments, settle a medical bill, or purchase a used car. Regardless of your financial needs, online lenders give you immediate access to the cash you need.
In fact, many installment loans are direct deposited in your bank account within 24 hours (and in as little as 30 minutes). With most lenders providing instant approval, you don’t have to wait for a long time before receiving your cash.
2. More time to repay
As opposed to payday loans, installment loans provide both fast cash and more time to repay. The loan amount is typically spread out over months or years, and you often won’t have to pay more than 10%- 20% of your monthly income towards the loan installment. This means that you can handle your financial emergencies without worrying about your next paycheck taking a big hit. In addition, some installment loans also reflect positively on your credit report. If you make timely repayments, you may be able to raise your credit score over time.
3. Flexible loan options
Because installment loans are repaid over a period of time, most lenders are willing to work with you to provide flexible loan options. They can adjust the loan terms to match your income, financial needs, and ability to repay.
In addition, expert resources such as Bonsai Finance connect you with the right lenders for your financial needs.
4. Eligibility even with bad credit
Perhaps the biggest misconception with installment loans is that you can’t qualify with bad credit. However, you’ll be surprised to note that most lenders don’t consider your credit score when approving an installment loans. Most loans are determined by your income and your ability to meet the monthly installments of your loan.
Many people (over one third of adults in the U.S) have bad credit. There are various reasons why people may end up with lower than average credit scores, including dealing with a financial emergency, student loans, or medical condition. Therefore, lenders understand that you may not have a perfect credit score at all times. This doesn’t mean you shouldn’t be able to access an installment loan to meet your financial needs.
5. A simple application process
The icing on the cake with installment loans is that you can obtain one via a quick and easy application process. Traditional loans (such as bank and auto loans) often take months to apply and obtain approval. Furthermore, you will have to wait even longer to obtain the funds that you need.
Online direct lenders provide you with the money you require in a matter of hours or even minutes.
Important factors to consider when looking for online installment loans direct lenders
As useful as installment loans are, you still have to conduct due diligence before applying. Indeed, you should be smart about selecting a lender, deciding how much you need, and developing a plan for repayment.
Here are important factors you should consider before applying for an installment loan.
1. What is the money for?
To avoid getting into unnecessary debt, you should only apply for an installment loan to meet a specific financial need. Most people are tempted to apply for installment loans just because they’ll have access to extra cash. However, you may end up incurring a loan and a lengthy repayment period for no important reason.
Make sure you need the money for a specific financial need, such as paying off a medical bill or carrying out home renovations.
2. Can you repay it?
Another common mistake that people make is to borrow an installment loan that is too high for them to repay. When looking into loan options, honestly check your income versus expenses, and determine how much you can afford to pay each month.
It’s advisable that not more than 10-20% of your income should go towards your monthly loan installment. Therefore, when applying for a loan, make sure you negotiate with your lender to arrive at monthly installments that won’t cause you to end up defaulting. You should carefully read through the terms of your loan and ensure that the repayment plan fits into your budget.
3. Do you have the right lender?
You should also take time to find the best installment loan lender that meets your needs. Bonsai Finance makes this process much easier for you, as we connect you to a network of trusted direct lenders who are ready to provide competitively priced installment loans.
The application process
When applying for an installment loan, the process is typically quick and can be completed in a matter of minutes. Since most lenders provide online services, you can apply for installment loans from the comfort of your own home.
Borrowers typically need to provide the following as part of their application.
- Proof of income (in the form of a bank account statement or paystub)
- Proof of Identity (state ID or driver’s license number)
- An active U.S. bank account
Installment loans are useful and reliable options for meeting an immediate financial need. If you find yourself in need of cash urgently, an installment loan provides you with the necessary funds and gives you enough time to repay. And even if you have bad credit, installment loans direct lenders give you access to much needed cash as long as you have a reliable and verifiable income. With Bonsai Finance by your side, we can connect you with multiple direct lenders to negotiate the final terms of your installment loan.