top of page
Button

Ten Things You Should Know About Installment Loans

  • Aug 20, 2017
  • 4 min read

When faced with financial constraints most people are desperate for money. For this reason, they approach lending companies without proper scrutiny whether it is for their own good or they may end up losing more sinking further into debt and even hurt their credit score. With the current economic situation, there are various forms of lending which are out there to make the profit. Therefore borrowers should be careful not to get duped such that they end up regretting the choice they made without considering other better options.

What is an installment loan?

Before you consider applying for any loan you should at least have a basic knowledge of what you’re getting yourself into. By understanding what loan you are about to take helps you know whether it can meet your financial needs or not. An installment loan generally refers to any type of loan whether for personal or commercial purposes that are borrowed and is supposed to be repaid in scheduled payments or installments. Installment loans relieve off the borrower the burden of having to pay the whole lump sum at a go like other forms of borrowing like payday loans which take a huge chunk out of your paycheck.

Installment loans are secured and unsecured

There are various forms of installment loans that include, auto loans, mortgages and personal loans. These loans are both of a secured and unsecured nature. In that Mortgages and Auto, loans are typically secured types of loan. In both cases, you give up property as collateral which is a house in the case of mortgage loans and a vehicle for auto loans such that in the event that you default in payment the lender has the legal obligation of taking up your property and selling it in order to pay him/herself.

Personal loans, on the other hand are unsecured. That means to apply for a personal loan the creditor does not require you to put up any property as collateral instead the creditor checks your creditworthiness which is determined by your credit score, and proof of income which guarantees that you are in a position to make payment. Installment loans are more flexible hence allowing borrowers to distribute payments throughout the loan term.

Requirements for application

Before applying for an installment loan it is important that you try its eligibility test in order to determine whether you qualify for the loan. However, the eligibility test of an installment is quite easy both online and in-store. You need to meet a few set requirements in order to secure this loan, these requirements include: Minimum age, where you must have attained the legal age of 18 years or older in order to apply for the loan, secondly you must reside in the state you choose for your loan option such that you cannot approach a lender in Ohio whereas you reside in Colorado the application process will not go through. If you are applying for online installment loans you must provide your social security number and a saving or check account since upon approval your funds are transferred directly into your account. Upon meeting these standards then you are eligible for an Installment loan.

You do not have to be employed

Most people shy away from loans as some of them require you to provide a letter from the employer as proof of employment. This leaves out people who are in need of financial assistance but are not employed. Installment loans relieve you of such pressure. With this loan, you do not need to be employed so long you have a steady source of recurring income. This guarantees the lender that you are in a position of making scheduled payments or installment for the agreed period of time.

Additional fees

It is always important to consider the cost that you are likely to incur while applying for a particular loan before you even start the application process. When applying for online installment loans in addition to interest charges borrowers have to pay other fees such as application fees and processing fees.

Installment loans have fixed interest rates

Many times borrowers suffer waking up to hiked interest rates as the loan progresses. Some traditional forms of borrowing have varying interest rates such that they end up increasing the repayment cost of the loan in the long run. This makes it even more expensive for the borrower such that he/she may delay in making payments which could adversely have a negative effect on the credit score. By providing fixed rates Installment loans give borrowers a golden chance to budget their finances over the repayment period hence keeping them more at ease.

Installment loans improve your credit score

All borrowers strive to maintain a clean credit score. A good credit score opens avenues for borrowing and somehow acts as a guarantee that the borrower cannot default in making payment. There are forms of traditional borrowing which hurt your credit score if you are late in making payments or if you default altogether. Installment loans, unlike these other forms, improve your credit score with time. With every payment or installment, you make your credit score improves. Borrowers with bad credit, therefore, can redeem their creditworthiness.

Installment loans no credit check

For those who are haunted by a low credit score or no credit such that their borrowing is somewhat difficult, installment loans offer a ray of hope to them. Borrowers on this bumpy road of bad credit can apply for bad credit installment loans from installment loan direct lenders who do not check your credit score but lend you funds directly to your bank account. Installment loans no credit check is the best option and what you should look out for

They are fast

Installment loans are tailored for emergent situations such as medical bills, death in the family, unexpected car finances and many others that only seem to pop up catching you unawares. For this reason, Installment loans offer funds to the borrower’s account on the same day or on the next business day. Application of an installment loan also does not require a lot of documentation hence making the loan processing procedure faster.

Installment Loan Companies

This is a very important aspect to consider before applying for an installment loan. Borrowers should carry out research to ensure that they are dealing with a licensed company. The emergence of rogue loan lenders is on the rise nowadays which calls for borrowers to be more vigilant and on the lookout for extortion. The borrower should ensure that the lending company is licensed by the state before entering into agreement

 
 
 

Comments

Recent Posts

Disclaimer

A personal loan is a medium term loan with a fixed interest rate that is repaid in equal monthly payments and it's usually limited to 24 months. Loan offers and eligibility depend on your individual credit profile. Our lenders can help you obtain as much as $3,000 depending on the lender, your state, and your financial situation.

The owner and operator of My e-Loan Solutions.com is not a lender and is not involved into making credit decisions associated with lending or making loan offers. Instead, the website is designed only for a matching service, which enables the users contact with the lenders and third parties. The website does not charge any fees for its service, nor does it oblige any user to initiate contact with any of the lenders or third parties or accept any loan product or service offered by the lenders. All the data concerning personal loan products and the industry is presented on the website for information purposes only. MyEasyLoans.com does not endorse any particular lender, nor does it represent or is responsible for the actions or inactions of the lenders. My e-Loan Solutions.com does not collect, store or has access to the information regarding the fees and charges associated with the contacting lenders and/or any loan products. Online personal loans are not available in all the states. Not all the lenders in the network can provide the loans up to $3,000. My e-Loan Solutions.com cannot guarantee that the user of the website will be approved by any lender or for any loan product, will be matched with a lender, or if matched, will receive a personal loan offer on the terms requested in the online form. The lenders may need to perform credit check via one or more credit bureaus, including but not limited to major credit bureaus in order to determine credit reliability and the scopes of credit products to offer. The lenders in the network may need to perform additional verifications, including but not limited to social security number, driver license number, national ID or other identification documents. The terms and scopes of loan products vary from lender to lender and can depend on numerous factors, including but not limited to the state of residence and credit standing of the applicant, as well as the terms determined by each lender individually.

APR Representative

APR (Annual Percentage Rate) is the loan rate calculated for the annual term. Since MyEasyLoans.com is not a lender and has no information regarding the terms and other details of personal loan products offered by lenders individually, My e-Loan Solutions.com cannot provide the exact APR charged for any loan product offered by the lenders. The APRs greatly vary from lender to lender, state to state and depend on numerous factors, including but not limited to the credit standing of an applicant. Additional charges associated with the loan offer, including but not limited to origination fees, late payment, non-payment charges and penalties, as well as non-financial actions, such as late payment reporting and debt collection actions, may be applied by the lenders. These financial and non-financial actions have nothing to do with MyEasyLoans.com, and My e-Loan Solutions.com has no information regaining whatsoever actions may be taken by the lenders. All the financial and non-financial charges and actions are to be disclosed in any particular loan agreement in a clear and transparent manner. The APR is calculated as the annual charge and is not a financial charge for a personal loan product.

Late Payment

 

It is highly recommended to contact the lender if late payment is expected or considered possible. In this case, late payment fees and charges may be implied. Federal and state regulations are determined for the cases of late payment and may vary from case to case. All the details concerning the procedures and costs associated with late payment are disclosed in the loan agreement and should be reviewed prior to signing any related document.

Non-payment Implications

Financial and non-financial penalties may be implied in cases of non-payment or missed payment. Fees and other financial charges for late payment are to be disclosed in the loan agreement. Additional actions related to non-payment, such as renewals, may be implied upon given consent. The terms of renewal are to be disclosed in each loan agreement individually. Additional charges and fees associated with renewal may be applied.

Debt collection practices and other related procedures may be performed. All the actions related to these practices are adjusted to Fair Debt Collection Practices Act regulations and other applicable federal and state laws in order to protect consumers from unfair lending and negative borrowing experience. The majority of lenders do not refer to outside collection agencies and attempt to collect the debt via in-house means.

Non-payment and late payment may have a negative impact on the borrowers’ credit standing and downgrade their credit scores, as the lenders may report delinquency to credit bureaus, including but not limited to Equifax, Transunion, and Experian. In this case, the results of non-payment and late payment may be recorded and remain in credit reports for the determined amount of time.

© Copyright 2017
bottom of page