Installment Loan FAQs

November 14, 2016

Loans

Financial Troubles

It would be amazing if we lived in a world where everything always went the way it was supposed to.  The unexpected would always be expected and your funds for a rainy day would always be on hand in case you needed them. It is quite unfortunate that life doesn’t exactly work like that.

Events that are unexpected can mean that we are left facing financial burdens that can be detrimental to people who barely make enough money for their bills, let alone a fund for rainy days. This is why companies provide people with fast installment loans as an alternative to payday loans so that everyday people will be able to stay afloat financially. 

How do you know if this is the right option for you, though? Here is a quick look at some of the most frequently asked questions. These might be the answers you are looking for.

Is this a personal loan?

By definition, a personal loan is a loan that is given to people who need it to pay unexpected expenses or other things. There is usually a period for repayment which can be as little as a month or as long as 6 months. The payments are made in installments so, in a sense, an installment loan could be considered to be a personal loan. 

How much can you borrow?

Depending on where you go, you might be able to borrow up to $1,250. Now, you will notice that banks and other traditional lending institutions don’t like to approve loans for that small of an amount. You might be able to get a loan of that size from a credit union, but your best bet in cases like this is to go to an institution that offers alternatives to payday loans.

What are the requirements?

To be a qualified applicant, you will need to have an active checking account, a valid social security number, and a source of income that can be verified.

Are there any benefits to this type of loan?

Yes. One of the main ones is that they are predictable. This means that you have the same amount to pay each time you make a payment on it. They are also free from collateral. What this means is that installment loans are easy to get when you need them. They have minimal requirements for you to be eligible to get one and they can be funded quickly.

How do you know if this is the ideal option for you?

First, you should assess your financial situation. An installment loan is intended to be a solution that is occasional and one that is only a short term one. This is not to be looked at as a source of help that is ongoing. If you are in need of more assistance than what you can get from an installment loan, you might want to consider setting up an appointment with a professional credit counselor.

Make sure to only borrow an amount that you are certain that you will be able repay on time. If you can happen to budget repaying the loan promptly with your next paycheck, this is the most responsible approach. When they are used as intended and responsibly, installment loans can work as a great alternative to things like damaged credit scores, credit card debt, and late fees.

How long does it take?

Not very long at all. If you apply during the hours of operation, installment loan companies will typically be able to call you within 5 minutes of our receiving the application. Once everything gets approved, you might be able to have the money in your account as soon as the very next business day.

Payments

All of your payments will be due on the agreed upon scheduled payment due dates. These dates will typically correspond with the days you get paid. Most of the time, loans will be due to be paid in full at around 6 months, but you are welcome to pay it off early and you will not be penalized for doing so.

Installment Loan