What Are Installment Loans?

Loans have consciously and unconsciously seeped into our-modern day spending – from big-ticket ones like mortgages and home equity loans to short-term loans like payday loans and revolving loans with the use of credit cards. Loans have made it possible to purchase items that people couldn’t otherwise pay for in cold hard cash. Borrowing money from the federal government, banks, and third-party lenders locks borrowers into an agreement of a scheduled pay-off plan. The payment schedule varies widely depending on the type of the loan. Payday loans typically need to be paid off in full in at least two weeks’ time while mortgages can be paid in 5 to 40 year terms with fixed monthly payments.

An installment loan offers qualified customers access to larger loan amounts, a longer repayment period, and a more personalized repayment schedule than a payday loan.  Although, they are similar to payday loans installment loans give borrowers more repayment options and flexibility than with payday loans.  Installment loans provide a borrower with an opportunity to choose a repayment schedule and to customize payments that are stretched out over a period of time in a series of installments rather than a single lump sum.  This is most helpful for borrowers who can’t afford to use a large portion of their earnings in one fail swoop to pay back a one time loan.

What Is The Difference Between A Payday Loan And An Installment Loan?

An average payday loan ranges from $300 to $500 and is typically repaid on the borrower’s next payday via electronic funds transfer or post dated check.  The average installment loan ranges from approximately $200 to sometimes thousands of dollars. The largest differences between a payday loan and an installment loan is that installment loans are typically paid back on a monthly basis over an extended period of time with the loan and interest put into a sequence of monthly payments

Why An Installment Loan Instead Of A Payday Loan? 

Borrowers should consider an installment loan instead of a payday loan for larger expenses and lower interest rates. Installment loans are great for purchasing more expensive items or services such as building and home repairs, automobile maintenance and repairs, unexpected educational expenses such as the need for a new computer or printer, and unexpected emergency medical needs. Payday loans are more suitable for less expensive items such as groceries, small unexpected non recurring bills, clothing for work when there has been a sudden change in dress code in between paydays, or unexpected travel expenses for work or family emergencies.

All Installment Loans Have Commonalities

  •  Long-Term

Installment loans are usually repaid in monthly installments over a period of approximately six months.  Unlike a payday loan, which is usually due on or around the borrower’s next payday and repaid in a single payment,installment loans are paid in multiple payments.

  • Personalized Repayment Plans

Lenders of installment loans are typically more flexible with repayment terms than are payday lenders because the loan is designed to cover a longer period of time than a payday loan. The longer repayment time of an installment loan allows the lender to work more closely with the borrowers to develop a repayment schedule that is customized to be budget friendly for the borrower.

  • Online installment loan Applications

In this day and age applying for an installment loan is easier than ever because borrowers don’t have to leave the comfort of their homes, aren’t restricted by the office hours of a brick and mortar building, and have endless possibilities to find a company that best fits their needs online.

  • Can Be A Secured or Unsecured Loan

Secured Loans

 

Secured-LoanSecured loans are loans that are protected by an asset or collateral of some sort meaning that the item purchased is used as collateral. The lender holds the deed or title until the loan has been paid in full, including interest and all applicable fees. Secured loans are usually the only way to obtain large amounts of money because it provides some assurance that the money will be repaid according to the agreed upon terms.  Putting a borrower’s home or other property on the line is a safe guarantee that he will do everything in his power to repay the loan.   Secured loans usually offer lower rates, higher borrowing limits and longer repayment terms than unsecured loans.  As the term implies, a secured loan means the borrower is providing “security” that his loan will be repaid according to the agreed terms and conditions. It’s important to remember, if the borrower is unable to repay a secured loan, the lender has the authority to foreclose or repossess the item used for collateral and sell it to pay off the balance of the loan.

Unsecured Loans


With an unsecured loan borrowers don’t need collateral to be approved for the loan. Collateral is something valuable in the borrower’s possession such as an automobile title that will stand good for the debt in the event the borrower fails to repay the loan so the lender can regain some or all of their money. Unsecured lending is riskier for a lender than secured lending so the amounts loaned are typically lower and have a slightly higher interest rate.

  • Relatively Larger

Because they can be long-term and secured, installment are usually for larger amounts than payday loans because it may be possible for lenders to recover some lost resources.

  • Typical Borrowers Must:

     

    • Be at least 25 years old or older
    • Meet citizenship requirements
    • Have a valid bank account that can receive direct deposits
    • Have a verifiable minimum monthly income of $1300
    • Have proof of employment such as a recent pay stub
  • Installment Loan Pros

     

    • Repayments are set up in advance so a borrower is aware of the amount he will be repaying along with a fixed interest rate.
    • Payments remain the same so the borrower is able to calculate the payment into his budget.
    • Longer and lower payments compared to payday loans means the borrower can pay back the loan over a longer period of time rather than his next payday.
    • Reasonably quick to set up with a short process time.
    • Funds can be transferred within a few days of successfully completed and approved application.
  • Installment Loan Cons

     

    • Payments are higher than traditional loans but not as high as a payday loan.
    • Missed payments and/or deadlines can result in late fees and extra charges that increase the cost of the loan and negate the pro to the installment loan.
    • In some cases installment loans may be secured by an asset and failure to pay them can result in seizure of the asset in order to pay off the debt.

Loan Compatibility

When a borrower is trying to decide what type of loan is most compatible for his needs he must first determine how much he needs to borrow and for how long. Does the borrower want something that is quick and short term such as 1 or 2 weeks or does he need smaller payment that can be extended over a few months? Obviously larger amounts over longer periods of time would be more manageable as an installment loan rather than a payday loan that would need to be repaid within a few short weeks and possibly reek havoc on a tight budget.

Qualifying for Installment Loans Online

Applying for an installment loan is similar to applying for any other loan.  An applicant must meet the criteria set by the lender in order to be approved and most are surprised by the simplicity of the process. The basic criteria for a potential borrower is he must be at least 25 years old, have a valid bank account capable of receiving direct deposits, have a minimum monthly income of $1300, and proof of employment. Although some lenders may look at a potential borrower’s credit rating this is usually not the determining factor for approval for some lenders. Borrower’s are approved for installment loans every day that have poor credit, no credit, and even a bankruptcy on their credit history and/or report.

Repayment Terms for Online Installment Loans

Repayment terms will depend on the policies of the lender; however, they are normally drawn up and an agreement made prior to funds being transferred to a borrower’s checking account.  Most lenders want a repayment schedule that works with a borrower’s budget so repayment terms usually range between 14 and 18 months. With an installment loan interest accrues the same as it does on a mortgage or automobile loan based on the amount of money that is borrowed.  Unlike some mortgage or automobile loans most installment loan lenders don’t penalize the borrower for an early pay off giving the borrower more control over how much he pays in fees.  In other words, paying an installment loan off early would enable the borrower to pay fewer fees.online installment-loans

About Us

GAD Capital is committed to providing hard working people with a quick and easy short term solution to unexpected expenses. Customer satisfaction is our goal, if you’re drowning with bills and need to take action TODAY count on www.GADCapital.com for your Short Term Loan needs. Get the attention and service you DESERVE, give us a call today 1-877-403-3392.  Our services stand above that of others because we strive to match you with services that not only work for you but services that you will be happy with and will recommend to friends and family who find themselves in need also.

At GAD Capital we aren’t a lender nor are we part of setting the terms of the loans instead we strive to find suitable lenders for potential borrowers by screening them to ensure that they meet the requirements of the lenders within our network.  GAD Capital is simply a bridge that connects a borrower to lenders.  The terms of the installment loan such as interest rate, loan amount, associated fees, and repayment schedule are determined by the lender and borrower. Each lender has their own approval criteria so it would be impossible to list all of the required qualifications of all the lenders within the network that GAD Capital provides screening for. However, in most cases having a poor credit score does not disqualify someone from being eligible for an installment loan and the lenders who partner with GAD Capital aim to provide loans to individuals who do not have perfect credit.

Applying for your personal installment loan is easy through GAD Capital’s online application. Because GAD Capital is a screening agency rather than a lender we have more resources than the traditional brick-and-mortar lenders that offer installment loans.  In order to have the same options and access to lenders potential borrowers would have to go to several different loan offices, which would mean taking off numerous hours from work and lost wages in order to meet with all of the available lenders during the lender’s business hours. At GAD Capital we supply borrowers with potential lenders on the borrower’s schedule instead of the lenders schedule eliminating the potential for the borrower to jeopardize his employment.

 

 

 

 

Online Payday Loans

A payday loan is a unique type of loan that relies on a borrower’s employment status instead of a good credit report. Lenders approve loans based on the borrower’s ability to repay the loan when he receives his next pay check instead of his credit history. The only thing the borrower really needs to secure the loan is proof of employment.  They are small loans that are intended to be short term.  Traditionally, a payday loan, also known as a cash advance or payday advance, was a loan that was repaid on or before the borrower’s next payday but in today’s world the repayment date can be adjusted to better meet the borrower’s schedule and needs.

Common Characteristics Of Payday Loans:

There are a large number of payday loan lenders and all payday loans have commonalities

Short-Term – Payday loans are usually due on or around the borrower’s next payday. This might be in a week or a month but is rarely much longer than that. Unlike an installment loan, which consists of multiple payments, payday loans usually require a single payment.

Unsecured – Borrowers don’t need collateral to take out a payday loan. Collateral is something valuable in the borrower’s possession such as an automobile title that will stand good for the debt in the event the borrower fails to repay the loan so the lender can regain some or all of their money. Unsecured lending is riskier for a lender than secured lending so the amounts loaned are typically lower and have a slightly higher interest rate.

Relatively Smaller – Because they are short-term and unsecured, payday loans are usually for smaller amounts than a secured loan because it is difficult for the lender to recover lost resources. They are designed to help the borrower deal with immediate financial hardships yet small enough to pay back relatively quickly. Typical Criteria For Payday Loan Consumers:

  • Be at least 18 years old or older
  • Be a permanent United States Citizen
  • Have a valid bank account that can receive direct deposits
  • Have a verifiable minimum monthly income

Typical Payday Loan Amounts:

Generally, loan amounts will vary between lenders but will typically range from $100 to $1,500.   Lenders might even consider larger amounts depending on the borrower’s situation. The determined amount will depend on income and other requirements.

Typical Uses For Payday Loans:

Payday-Loanpayday loan online can be used the same as a traditional loan. However, it is important for a potential borrower to keep in mind that these loans are typically for smaller amounts and for shorter periods of time so they are probably best used for unexpected and emergency expenses.  Approximately 47.7 million Americans live in poverty each year with average earnings of $44,569. The average American spends $14, 856 on taxes, $11,970 on housing, $9,477 on additional housing expenses such as fluctuating utility costs and insurances, $5,784 on automobile payments, $2,223 on automobile maintenance and gasoline, $6,759 on food, and $4,290 on health care each year. By simply doing the math it is easy to determine that the average American has a $1,322 deficit within his personal finances each year with absolutely no wiggle room for unexpected expenses or emergencies.

Reasons To Apply For A Payday Loan:

There are several reasons that online payday loans are becoming popular:

  • Convenience – Unlike loans from traditional lenders, online cash advances can be applied for and receive without leaving the comfort of home with the least amount of hassle.
  • Bad Credit, No Problem – Traditional lenders base approvals on customer credit ratings but payday loan lenders have more lenient criteria for basing approvals.
  • Speed – When applying for payday loans online, customers aren’t made to wait for a letter or phone call of approval because they receive notice of approval or denial almost instantly based on the information that they provide. Customer’s that provide bank account information can have their money deposited as quickly as the next day. This way, they will have their money when they need it most without playing the waiting game.
  • Availability – Traditional brick and mortar lenders have limited business hours that can be difficult for potential customers to work around.  Very few people can miss a day of work in order to apply for a loan with these lenders.  Not to mention if the potential customer is in a financial crisis waiting for the approval decision can add to the crisis.  With an online cash advance, customers can apply 24 hours a day, 7 days a week and there are no bank holidays when it comes to receiving a cash advance online.
  • Meeting Urgent Needs – Traditional lenders will want to know why potential borrowers are borrowing money and what the money is going to be used for. Payday lenders understand that hard times fall on good people and that unexpected expenses come up. When people are forced to live paycheck to paycheck there usually isn’t a cushion to fall back on so payday lenders are sensitive to the needs of those people and understand that sometimes urgent needs must be met. Online payday loans aren’t as intrusive as traditional lenders and customers privacy and financial situations are respected.

Key Facts About Payday Loans Online:

  • The average online payday loan amount is $375.
  • The majority of payday loan borrowers are driven by desperation and/or unrealistic expectations.
  • Almost all payday loans are incurred due to personal or family expenses.
  • Approximately 12 million people use payday loans each year.
  • Approximately 81% of borrowers say they would be forced to cut back on needed items such as food and clothing if it weren’t for payday loans.
  • Approximately 69% of first time borrowers use the loan for reoccurring bills.
  • Approximately 41% of borrowers have needed something like a tax refund to pay off a payday loan.

Reasons Borrowers Are Drawn To Online Payday Loans

  • Desperation
  • Focus on fee
  • Perception
  • Reliance
  • Temptation
  • Trust

Reasons Borrowers Use A Payday Loan Instead Of A Credit Card:

  • 4% of borrowers don’t have a credit card
  • 11% of borrowers are making payments on a credit card they haven’t used in the past year
  • 38% of borrowers applied for a credit card were turned down or knew
    that they would be denied based on their credit history.
  • 41% of borrowers have used a credit card in the past year but haven’t maxed the card out.
  • 47% of borrowers don’t want a credit card.
  • 59% of borrowers have used or maxed out a credit card in the past year.

    What are the requirements for a payday loan?

online payday loans

Online Payday Loans

To be approved for a payday loan a potential borrower must be at least 18 years old, a United States Citizen or at least a legal resident, have valid employment with minimum monthly earnings of $1000 a month, valid email address, valid phone number, and a bank account that is capable of receiving direct deposits. One thing that is rarely required and/or taken into consideration during the approval process for a payday loan is a potential borrower’s credit history. Payday loans are typically unsecured loans that don’t have repayment terms based on a borrower’s history instead repayment terms are based on the borrower’s ability to repay the loan quickly.

Receiving A Payday Loan

Typically online payday lenders deposit the borrowed money into the borrower’s checking account within one business day of being approved.  The borrower then has instant access to the deposited funds.

Repaying A Payday Loan

The majority of payday loans reach their maturity on the borrower’s next payday at which time the lender will draft the money from the borrower’s checking account. Though these types of loans are meant for short term use only, the repayment terms are usually flexible in case the borrower is unable repay the loan in full on his next payday. In fact sometimes the borrower will be given the option to repay the loan in installments or roll it over until the borrowers next payday for an additional fee.

About Us:

GAD Capital is fast, reliable, and hassle-free. We understand that most people live from paycheck to paycheck and that an unexpected expense can happen to anyone. Unfortunately unexpected expenses are rarely timed just right and often occur between paydays.  However, it is fortunate that in times such as these a person can apply for a short term loan to get him over the hump until his next payday. Bank loans can take days for approval where as (800) 961-5909 are more lenient and approval can be surprisingly fast. GAD Capital doesn’t charge a fee to submit a request, gets you a decision quickly, and our lenders deposit the money directly into the borrower’s bank account upon approval.

Unlike other payday loan lenders,GAD Capital offers a paperless loan request process. No extra documents are required. The potential borrower simply completes the online request form and receives the cash quickly after completing the process with the lender. GAD Capital customers have the convenience of two paperless request processes: online via GAD Capital  or by calling our customer service department at (800) 961-5909. When a potential borrower chooses to call our customer service department a live operator will assist him with the utmost professionalism and will keep his personal information private and safe.  We value our customer’s privacy and have stringent security measures.  Either way, the process is quick and easy with approvals sometimes being granted or payments made in as little as an hour.

Online payday lender networks like GAD Capital are quickly replacing traditional bank loans because approval requirements aren’t as stringent and they aren’t as concerned about a credit score. We understand that living paycheck to paycheck can be difficult and everyone despite their credit rating will have emergencies that come up. When those emergencies come up we are here to help when traditional lending institutions are not because hard times fall on good people and we don’t want those good people to be left out in the cold simply because of a number.

Getting a payday advance is also more convenient than ever before. This is the technological age and anyone with access to a computer and/or internet connection or a phone can easily apply for a payday advance loan without the need to leave the comfort of home. Call (800) 961-5909 to request for a payday loan today.  Unlike traditional brick and mortar lenders we are available 24/7 and don’t have bank holidays. The following holidays are observed by federal banks and their branches: New Years Day, Martin Luther King, Jr. Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.  In addition to the aforementioned holidays most banks are also closed on Saturday and Sunday. Despite the day of the week, month, or year when our customers are approved they can count on receiving the money they need when they need it.  At Payday Now our lenders are flexible and work with our customers and allow them to choose the repayment date for their contracts. If a single payment is more than the customer can financially handle, no problem, our lenders provide customers with the option of repaying their loans through installments.