If you need a large amount of cash quickly, a typical payday loan may not be sufficient. Instead, online installment loans instant approval might be a better alternative.
Unexpected expenses can be stressful, especially if you’re working hard to build your savings. Even a single surprise repair could set you back for months.
Many people need a little financial help every now and then, and using an online loan can help you get the quick funds you need to carry on with life.
But with so many loan options available, it can be difficult to determine which one is best suited for your unique needs.
This guide covers the basics of online installment loans so you can make an informed decision about your finances.
The Basics of Online Installment Loans Instant Approval
An installment loan is just what it sounds like: a loan that lets you repay in payments, or installments, rather than repaying the loan all at once.
You get the money you need up front, usually in a larger amount than regular payday loans, and pay back the money over time.
The loan is usually repaid over a period of 1 to 6 months. These loans are considered medium-term loans, and generally, require more than one pay period to pay back the entire amount.
Car loans, money for home repairs, and personal loans for major purchases can fall under the category of installment loans.
Why Use an Installment Loan?
The benefits of an online installment loan are multifold:
Zero Collateral Required
For starters, there is no collateral required of the borrower. Rather, the borrower’s ability to repay the loan is used as security. For example, you may present a paycheck or stub to show you have the means to pay back the money you borrow.
Fast and Easy
Instant installment loans are growing in popularity because of the quick availability of funds. They eliminate much of the clutter and bureaucracy of going through a bank without sacrificing security.
Another attractive benefit is that installment loans can be acquired without having to leave your home. The entire process is completed online and funds are deposited directly into your account.
In essence, you can apply for and receive your loan in as little as 24 hours without fighting traffic or waiting in line. You also have the ability to make payments online without wasting money on gas or postage.
Also, the interest rates and other fees for installment loans are usually less than that of a payday loan.
In addition, most online installment loans can be paid off early with no fees or penalties for early payment.
The Right Amount
The amount you can borrow with an installment loan can vary. Some people may borrow as little as $500, while others may need as much as $5,000.
Bad or No Credit Required
Many people opt for an installment loan for big purchases because they have bad or no credit. Your credit score is not a factor when considering your loan eligibility.
However, it can help you to build good credit if you make your payments on time.
Who Can Qualify for Instant Installment Loans?
In general, most people can instantly qualify online for an installment loan if they meet a few basic criteria:
First, you must be age 18 or older to apply for the loan. In some cases, you may be no older than age 65. Also, you must be a citizen and currently residing in the United States to qualify for a loan in the U.S.
Lenders may also require you to have a bank account. This is so the money can be directly deposited into your account. It also gives you an easy way to make your monthly loan payments.
In addition to your bank account, you must also have a credit or debit card to use as a backup method for repaying the loan. Most banks issue debit cards for free with your checking account.
Proof of Income
Your lender will also verify your ability to repay the loan. They may ask for proof of employment, such as a paycheck or stub. If you do not receive paper checks or stubs, you may show them a bank statement that displays payday transactions.
Finally, you should have a cell phone that can receive voice calls and SMS texts. Many lenders will send text reminders about upcoming payments. If you default on your loan, the lender will need to be able to contact you to remind you of missed payments.
If you meet all of the above criteria, you may qualify for an installment loan.
Even better, online installment loans instant approval means you get approved immediately and can access your funds quicker than having to apply in person.
How to Apply for an Installment Loan
Every lender has their own application process, so the steps involved can vary. But in general, you will be required to submit the above criteria, along with personal information such as your name, address, birthday, and email address.
If you qualify for an instant loan, you should see the funds in your account within the next business day. Keep in mind that some holidays can offset the deposit schedule. Also, if you apply after normal business hours, you might not see the funds until the next business day.
You should read the terms and deposit schedule for the specific lender you’re applying with for full details.
Applying for an installment loan online is fairly straightforward, but finding the best ones isn’t so easy.
Bonsai Finance helps you find reputable lenders that meet your unique loan requirements. We’ve vetted hundreds of loan options and lenders to give you an optimal experience that will meet your needs.
You’re busy – you don’t have time to spend comparing hundreds of different loan options. They’re not all created equal, and we can help you find preferred rates with better fees so you can get the money you need on your schedule.
Start your journey for online installment loans instant approval today.