There will be a time when life hits you with an unexpected expense. Whether it’s medical bills, home repairs, or a family emergency, something will happen that compels you to explore loan options.
If you have a solid credit history, finding a loan won’t be a problem. If your credit score is less than stellar, however, you’ll have a hard time getting a loan. If that’s the case, you’ll need to explore online installment loans with no credit check.
Let’s look at what these loans are, some of their benefits, and how you can find the help you need online.
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What Is An Installment Loan
An installment loan means that you borrow money from a lender and pay it back in set payments.
If you take out a loan for $1,000, you don’t have to pay it back with interest when the terms expire. Instead, you’ll make weekly, bi-weekly, or monthly payments. The borrower includes the interest in the payment amounts.
If the length of the loan is 10 months and the total after interest is $1,200, you’ll make ten monthly payments of $120. It’s an easy setup that allows the receiver of the loan to spread out the financial costs of their financial burden.
What Are The Benefits Of Installment Loans With No Credit Check?
The Payment Structure Benefits Borrowers
The obvious advantage for borrowers is the payment structure. Some other loans require you to pay back the entirety of the loan at once, interest and all. The assumption is that someone can save the money throughout the life of the loan and pay it back.
The problem with this is that if there’s another emergency, it might be impossible to save up the money. Once the payment comes due, if the borrower can’t pay their loan it goes into collections. This makes their credit score drop as a result.
Payday loans aren’t a viable option for most borrowers. These loans are easy to get approval for but come with steep interest fees. The fees are so steep that the federal government intervened.
The idea behind these loans is simple enough; you walk in, sign a check over to the company. They verify your income and give you money now, and they cash your check on your next payday.
The interest rates, however, are shocking. Some companies charge up to 3,377%. The length of the loan masks how high the interest rates are. The fees quickly add up though, with many consumers forced to live in a constant state of taking out a new loan to pay for the last one. A $500 dollar car repair can costs the borrower thousands of dollars in fees if they fall into the cycle of taking a loan out to pay for the last one.
One of the hardest things for someone with a low credit score to do is improve their rating. Companies that lend money assume the risk of someone not paying them back. Thus, they want to make sure they limit that risk by loaning to those with a good history.
An installment loan with no credit check is a great way to build your credit score. Most companies report to the major credit bureaus once you make your payments on time. Once you score rises, you could apply for a credit card with a low-interest rate to keep on hand for emergencies.
There is one drawback to these types of installment loans. If approved with a low credit score, you can expect to pay a higher interest rate. This is the lender’s way of minimizing their risk while not turning away customers in need. Think of this as an investment, however; use it to raise your score, and you’ll lower your interest rate on future loans.
Where Can You Find Installment Loans?
Have you ever been car shopping? There are two approaches. The first is that you can go to one dealership, talk only to them, and trust that you’ll get the best deal.
The second, and better option, is that you can go to multiple dealerships and look online. You find out what the best price is, and ask others to beat it. By putting the car dealerships into a competition, you end up with the best deal for you.
The same is true for loans. The internet creates competition for your business. That competition leads to better interest rates and terms for you, the consumer. The problem is that it’s hard to find every company. Even if you could find them all, do you really want to spend hours applying to each?
Bonsai financial is here to help you find preferred lenders for your situation. We don’t make any credit decisions; instead, we connect you with the people that do and tell you which lenders are likely to approve you.
The process is secure and free for you. There are some requirements for the service though:
- You must be at least 18 years old, or 19 if you live in Alabama
- You’re not on active duty or a dependent of an active duty military member
- You must have a job and have three months experience there
- Have a traditional bank account. The account needs three months of activity
- You must have direct deposit into your bank account
Let Us Help You Find A Lender
If you meet the criteria above, fill out our quick application and we will help you find a lender that meets your unique needs. Our service is free for you and your information is secure.
Don’t let life’s surprises get in the way of your financial future. Find installment loans with no credit check today!