If you are in search of a loan that will meet your needs fast and then give you plenty of time to repay, installment loans may well be your best option. An installment loan has many distinct advantages over other loan types, both in terms of convenience, terms, and guaranteed approval.
Personal installment loans are often resorted to by those facing an unexpected financial emergency or who can’t or don’t want to get a traditional bank loan. They have many benefits that make them more attractive than bank loans or payday loans.
What Exactly Are Personal Installment Loans?
Personal installment loans are “personal” in that they are lent directly to you as opposed to through a third party (like many banks and student loans) and can be used for personal expenses or any way you choose. They are repaid in regular, affordable monthly installments over a period of months or years.
Most installment loans are in the amount of $500 to $5,000. The exact amount you can get approved for, the loan term, interest rate, and fees, and other loan features vary based on the lender, borrower’s income level, and your personal preferences. Because a direct lender is used, you get greater freedom and flexibility in customizing your own loan.
There Are Many Options Available
As you’re looking for options for online installment loans, keep in mind that there are a lot of choices out there. If one loan does not suit your needs, or if you cannot qualify for it, continue to look, as there will be more to choose from.
Also, keep in mind that you should compare rates and terms of the loans to make sure you are choosing the best one possible. It’s a good idea to choose two or three options that might work, then compare them side by side to see which has better terms.
How Do Installment Loans Compare With Other Loan Types?
If you need cash fast that you can immediately spend upon receipt any way you please, then you can’t afford to wait around for the doubtful answer from a bank on a loan for personal expenses. Such a loan would usually not be approved, especially if you have below-average credit, and there would likely be restrictions on how to spend the money even if it were approved.
Payday loans can work well for very small amounts and very short terms of only two to four weeks. But when you need more substantial sums and you can’t pay it back so soon and in a single payment, a payday loan may become too expensive and/or impractical. Personal loans are the better option in that case.
Finally, some may be tempted to take out a title loan, but that would require you own your car free and clear and that you risk what might be your only means of transportation. A personal installment loan, by contrast, needs no collateral.
How Fast Can I Get an Installment Loan?
The fast application process is clearly one of the biggest conveniences of most personal loans. You simply go online, fill in only the most basic and relevant personal and financial information on a short form, click a button, and then you are immediately approved.
With many lenders, guaranteed approval is the norm. The only exceptions are for things like having an outstanding loan with that lender already, having failed to repay a fast cash loan in the recent past, not having an active US bank account, or being under the age of 18. Almost everyone who applies is approved without delay.
In most cases, it takes only a few minutes to fill out the application. Then, within one or two business days, the cash will be directly deposited to your bank account. There are very few other ways to borrow cash and have it at your immediate disposal as fast as you can with an online personal loan.
Online Installment Loans Even With Bad Credit
When many people hear the word ‘loans,’ they instantly wonder if they can qualify. This is especially the case if they have poor credit. However, there are many online installment loans that don’t require a check credit, which means you can qualify no matter what your credit situation.
This can be great news for those who are recovering from a bankruptcy, divorce, or other situation that has impacted their credit score.
What If I Have Bad Credit or No Credit?
Many people fear that, if their credit score is too low, they won’t be able to get a good loan. But if you opt for an installment loan, with most lenders, credit history won’t be a factor determining approval or disapproval.
Personal loan lenders base approval primarily on your income, not your credit score. If you have a verifiable source of income sufficient to reasonably make the monthly payments and repay the loan on time, then they approve you. It’s that simple. And the same thing applies to those who lack any significant credit history to speak of. It’s irrelevant.
How can these lenders afford to ignore credit, while other lenders can’t? Well, the answer to that is complex. First, with over a third of all US adults having “bad” or “poor” credit ratings, there is a lot of competition for these loan clients. Second, many people with bad credit have been financially responsible for years – they just went through a rough spot at one point in their life. Third, personal loan lenders charge higher interest than most banks – but, it’s often less than many credit cards. Still, you do have to pay for the convenience and for the added risk the lender takes.
Will A Credit Check Be Run on Me?
It’s fairly common knowledge that a credit check being run on you can hurt already damaged credit even further. That’s why you don’t want to apply for numerous loans in your search for a lender who will approve you, and end up with dozens of credit checks run on you. Guaranteed approval of many personal loan lenders eliminates that problem.
Plus, since they are not basing approval on credit score anyway, most personal installment lenders won’t even bother to run a credit check. Having no credit check both protects your credit and makes the process move faster.
Some lenders might run a soft credit check, but unlike a hard credit check, that won’t affect your credit score anyway. So it’s nothing to worry about.
Smart Tips When Looking for Personal Loans?
A personal loan is a great option in some situations, especially if you need cash fast, need time to repay, and don’t have sterling credit. But you still have to be smart about how you choose a lender, choose your loan terms, and manage your loan repayment.
First of all, be sure to verify the lender is reputable, has a history of customer satisfaction, and is recommended as a viable option by industry experts like those at Bonsai Finance.
Secondly, realize that many lenders give you a great degree of flexibility in customizing your loan terms. Your income level will limit how much you can afford to repay each month – usually, you should never make a loan payment over 10% to 20% of your total income. But you can extend the repayment period in order to qualify for the same loan amount in order to bring the payments down, for example.
Third, you will have to begin repayment within a month of taking out the loan, and there may be some initial fees. You will also have to set up automatic withdrawals from your bank account, which is good anyway since it ensures you won’t forget a payment and get hit with a late fee. Make sure you budget appropriately so you will have enough for all necessary expenses plus the loan payment.
You Should Have a Plan to Pay the Installments
When you are deciding if you should get an unsecured loan, make sure you take a look at what the installment payments are and make a plan to work that into your budget.
Getting a short-term loan is a good option to get yourself out of a temporary financial situation, but it should never be a long-term financial solution. If you cannot afford the installment payments, however, you need to look at other options.
If you have less than perfect credit and find yourself in a financial emergency, you should be aware that loan sources are available that can help you out. If you are considering an installment loan, keep in mind that you can still qualify even if you have bad credit, that there are plenty of options to choose from, and to include installment payments in your budget.
How to Find the Best Loan
There are many reasonable personal loans out there from reputable lenders, and almost all of them have an online presence. But that doesn’t mean it’s easy to find and compare them on your own. Can you imagine sitting down for hours and hours looking up one website at a time and trying to read all the fine print on each site? It’s not very practical.
Bonsai Finance provides the solution to that dilemma. You simply take advantage of our high-powered search engines to quickly locate your best loan options. You can narrow the search step by step until you have only a few top options.
Then, you might want to take the time to research out each lender or to ask for advice from Bonsai staff in making your final decision. The process becomes much more manageable this way, and you get better results since you are searching for a wide range of lenders and loan offers.
Why Choose Us?
Bonsai Finance specializes in connecting loan seekers with their most ideal lender and loan offer. We have deep experience in helping people find online personal installment loans that meet their needs and fit their budget. And we have a long list of satisfied past and current customers.
We at Bonsai are not a lender nor do we work for a particular lender. We are an independent company that is 100% free to recommend to you and assists you in finding the loan that is truly best, given your situation.
We can help you decide whether an installment loan or another loan type will best serve your needs. And we can walk you through the factors you need to consider in making a decision. There is no high-pressure salesmanship with Bonsai, but neither do we leave you stranded to try to figure everything out on your own.
Bonsai provides the tools you need to find the best installment loans available to you at a rapid pace. And we provide online assistance and many pages of information on the various types of loans we help people with and on how, when, and why to select a particular loan type. We are here to help 24/7, 365 days a year!