installment loans

Installment loan benefits

Posted on by Henry Davis
Installment loan benefits

Installment loan benefits

Unforeseen expenses are a common setback to most people’s financial status. These expenses include emergency medical bills, outrageous home bills and taxes or unexpected car repairs. They may leave you with no option other than to seek for financial aid from other sources. This drags you slowly into debt. It is imperative that you consider your choices and the lending companies that you choose to work with. Keen scrutiny expects you to note down critical components that constitute a loan. These include the repayment period of the loan, its interest rate and other aspects that are important to you.

Luckily, there are various alternatives available for you to choose from. Installment loans are among these choices. An installment loan refers to a loan which is to be repaid over a given period of time in installments. The repayment period may vary from a few months to as long as 30 years.

There are different types of installment loans out there. They include auto loans, personal loans and mortgages. Installment loans have certain merits that outweigh their demerits. That is why most people prefer installment loans to other forms of traditional borrowing such as payday loans.

Why you should use Installment loans

  • No credit checks installment loans

    No credit checks installment loans

    Speed: Most of these installment loans, if approved, will be transferred to the borrower’s bank account on the same day or the next business day. Direct lenders of installment loans do not ask for a lot of documentation, hence speeding up the processing time.

  • Interest Rates: Installment loans have lower interest rates than other alternative traditional forms of borrowing such as credit cards and payday loans. This makes Installment loans more reliable and appealing to borrowers. Low-interest rates reduce the total cost of repaying the entire loan. Most of these installment loans also have fixed interest rates. This keeps borrowers at ease as they need not worry about an increasing interest rate.
  • Flexibility: Compared to other loans, installment loans come with more flexibility. Generally, installment loans are long term. With a long loan tenure such as over 15 years, it is obvious that monthly payments will also be lower and easier to make.
  • No credit checks installment loans: Most people who are deep in debt are already experiencing difficulties in making full repayments within the agreed time frame. This is bound to hurt their credit score. Someone who has taken up bankruptcy, for instance, and defaulted in payment may be subject to a lower credit score. A low credit score scares away potential lenders who fear that you would not make payments promptly.

    Direct lender installment loans offer a flicker of hope for borrowers as they do not have credit checks as a requirement for eligibility. Their interest rates are also fixed, hence enabling borrowers to apply for installment loans with bad credit.

Payday loans vs installment loans

Posted on by Henry Davis

A loan refers to money borrowed by a debtor from a creditor that is to be paid back at an agreed time at an agreed interest rate. There are different types of loans for the borrower to choose from depending on which type suits his financial circumstances best. These loans include car loans, payday loans, personal loans and consolidated loans. Most of these loans are considered installment loans since the borrower pays the lender back in scheduled monthly payments. Borrowers should understand the differences between payday loans and installment loans to know what loan works best to their advantage.

Payday loans

 

short-term unsecured loan

short-term unsecured loan

A payday installment loan is also referred to as a payday advance. It refers to a short-term unsecured loan that is given to a borrower where he is expected to make payments on his next payday. Payday loans are usually associated with high interest rates as compensation for creditors who face dangers of the borrower defaulting repayments. The creditor cannot perform collection activities if the borrower does not make payment as payday loans are of an unsecured nature. Hence, they do not require you to put up property as collateral.

Payday loans have a simple but expensive application procedure which. It involves you writing a personal check for the amount of money you want to borrow. You are also expected to pay a certain amount of money for borrowing as application fee. Payday loans take a very short time to be processed. Borrowers receive their funds in their checking account electronically, fast enough to meet their immediate financial needs. Lenders of payday loans ask for few verifications which make qualifying for payday loans quite easy. Payday loan lenders require verification of employment or income which is determined through recent paystubs and bank statements. This financial information acts as a guarantee that the borrower is in a position to make repayments.

Online payday loans offer consumers fast application and upon approval the funds are deposited directly into the borrower’s checking account. The repayment procedure involves financial charges being withdrawn electronically on the borrower’s next payday. Payday loans come with certain advantages that appeal to many borrowers.

Advantages of payday loans

 

Payday loans are easy to get

Payday loans are easy to get

1.Easy to get: Payday loans do not involve tiresome procedures and complicated requirements. This makes it easy for borrowers to get a loan. The basic requirements are quite simple and the lender only requires you to have a stable job and a recurring income to qualify.

2. Fast to get: Most payday loans are transferred electronically into the borrower’s checking account. Upon filling out an application form and having your loan approved, you will have the cash you need really fast.

3. Convenience: Payday loans are convenient as they are readily available. Payday loan companies are located throughout most cities. Availability of online payday loans has made it easier for all borrowers to access this loan online.

Disadvantages of payday loans

 

Payday loans can harm your credit score

Payday loans can harm your credit score

1. They are expensive: This is a major reason why most people shy away from payday loans. Interest rates of a payday loan are extremely high which is linked to the risk faced by the creditors if the borrower defaults payment. Application fees are also charged to borrowers which makes borrowing a payday loan expensive.

2. Payday loans can harm your credit score: As payday loans are expensive, borrowers are often burdened by this high cost. So they may delay in making payments which would adversely harm their credit score.

Installment loans

 

Installment loans considered to be less risky

Installment loans considered to be less risky

An installment loan is a type of loan where the principal amount and interest are repaid back in scheduled payments known as installments. Compared to payday loans, installment loans are considered to be cheaper and less risky.

Installment loans are either secured or unsecured, depending on the type of installment loan. Mortgages and car loans are secured where the borrower is expected to put up his house or vehicle as collateral to get the loan. Personal installment loans, on the other hand, are unsecured and their borrowing is based more on the borrower’s creditworthiness and proof of income.

Advantages of Installment loans

 

do not have credit checks

do not have credit checks

1. Fixed interest rates: It is quite distressing when you wake up to hiked interest rates. Some traditional forms of borrowing have varying interest rates which would in the long run, thereby increasing the borrower’s sum of repayment. With fixed interest installment loans, your payments remain the same since its interest rates are fixed right from the beginning. You know exactly how much to pay every month. With this knowledge, you can budget your finances carefully so that you can make repayments promptly every month.

2. Longer terms: Long term installment loans can be as long as 30 years. During this period, the borrower can spread out their repayments over the loan term at his or her convenience. This makes installment loans more flexible than other short-term loans.

3. Easy and fast to acquire: Once you have applied for an installment loan and it is approved, you can get the money when the lender deposits the funds directly into your checking or saving account. Qualifying for an installment loan is very simple. The borrower has to meet the minimal age requirements of 18 years and older. You should also have a recurring income source. You must also provide a valid checking or savings account where you can receive your funds.

4. No credit checks: Some installment loans do not check the borrower’s credit score. Borrowers with bad credit or no credit can borrow payday installment loans.

Installment loans disadvantages

 

Risk of losing property

Risk of losing property

1. High Interest rates: Due to the fact that interest rates for installment loans are fixed, some lending companies may take that opportunity to charge outrageous rates. This would adversely increase your loan repayment amount. With the help of an installment loan calculator, you may avoid this pitfall. The installment loan calculator estimates for you the monthly payments and interest rates you are required to pay for the type of loan you choose.

2. Risk of losing property: There are installment loans that require borrowers to put up a collateral in order to secure a loan. In the event that he delays repayment, the creditor has the legal right to call for collection activities. In the long run, the borrower could lose his collateral.

Differences between payday loans and installment loans

 

Difference B/w payday & installment loans

Difference B/w payday & installment loans

Both payday and installment loans are associated with high interests and they can be easily available without subjecting the borrower to any credit checks. Despite their similarities, they also have their differences.

1. Payday loans are unsecured while installment loans can be both secured and unsecured depending on the loan type.

2. Payday loans are short-term loans that should be repaid on the borrower’s next payday. Installment loans provide longer term borrowing of up to 30 years.

3. Payday loans are paid using a post-dated check. For installment loans, lending companies electronically withdrawn or the borrower pay using a check every month.

4.  Payday loans have extremely hefty interest rates that may be as much as 390% whereas an Installment loan can only go up to about 90%.

How to choose the best loan for yourself

 

There are certain things you should consider before deciding on the type of loan to use. These include:


Interest rates

 

choose loan with lower interest rate

choose loan with lower interest rate

It is imperative that you choose the type of loan with a lower interest rate. This is because with a higher interest rate, you may end up paying much more in the long run which may force you to take out another loan to repay the former one. Installment loans have considerably lower interest rates compared to payday loans.

Effect on your credit score

 

Both types of loans may have a negative effect on your credit score if you delay in making payments or in the event that you default. However, making your installments on time every month can help repair your bad credit score. Payday loans, on the other hand, do not improve your credit score.

Repayment preferences

 

Payday loans are short-term loans. This means they have faster maturity dates and you are expected to repay the loan within a short time, usually by your next payday. Long-term installment loans can take up to 15 years, hence allowing you to plan manageable repayment schedules. This makes installment loans more flexible compared to any other forms of short- term loans. Get an installment loans calculator and see what you are missing on!

10 Things you need to know about installment loans

Posted on by Amy

When facing financial constraints, most people may be forced to approach lending companies. They may not have carefully thought about whether they may end up losing more or 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 profit. Borrowers should be careful not to borrow from such companies to avoid regretting the poor choice they made. Borrowers need to have better understanding and knowledge of the type of loans they want to take out. There are certain things you need to know about installment loans before deciding whether they are suitable for your financial needs.

  • What is an installment loan?

Installment loans are repaid in scheduled payments

Installment loans are repaid in scheduled payments

An installment loan generally refers to any type of loan that is supposed to be repaid in scheduled payments known as installments. Installment loans relieve the borrower of the burden of having to repay a whole lump sum at one go like other types of loans such as payday loans.

  • Installment loans can be secured or unsecured

There are various forms of installment loans such as auto loans, mortgages and personal loans. These loans are both of a secured and unsecured nature. Mortgages and auto loans are typically secured loans. In both cases you put up your house or car as collateral in return for a loan. In the event that you default in payment, the lender has the legal right to sell your house or car to recover the outstanding amount.

Personal loans, on the other hand, are unsecured. This 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 repayments in the future. Installment loans are more flexible as they allow borrowers to distribute payments throughout the loan term.

  • Requirements for application

Requirements for application

Requirements for application

Before applying for an installment loan, you need to meet a few set requirements to secure this loan. These requirements include: minimum age legal age of at least 18 years. Secondly, you must reside in the state you choose for your loan option so you cannot approach a lender in Ohio when you reside in Colorado. If you are applying for online installment loans, you must provide your social security number and a saving or checking account. That is because upon loan approval, your funds will be transferred directly into your savings account. Upon meeting these requirements, then you are eligible for an installment loan.

  • You do not have to be employed to get an installment loan

Most people shy away from loans as some of them require you to provide a letter from the employer as proof of employment. Installment loans relieve you of such pressure. With an installment loan, you do not need to be employed as long as you have a steady source of recurring income. This guarantees the lender that you are in a position to make scheduled repayments (installments) throughout the loan tenure.

  • 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 installment loans, make sure you’ve checked the interest rates and other fees such as application fees and processing fees.

  • Installment loans have fixed interest rates

Installment loans have fixed interest rates

Installment loans have fixed interest rates

Very often, borrowers suffer from rising interest rates. Some traditional forms of borrowing have varying interest rates such that they end up paying more in the long run. This makes it even 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. This is one of the differences with payday loans.

  • Installment loans improve your credit score

Borrowers strive to maintain a clean credit score for future borrowing. A good credit score opens up avenues for borrowing and somehow acts as a guarantee that the borrower cannot default in making repayment. There are forms of traditional borrowing which could hurt your credit score if you are late in making payments or if you default altogether. Installment loans improve your credit score with time. With every payment or installment made, your credit score improves. Borrowers with bad credit therefore can redeem their creditworthiness. Installment loans have no credit check.

  • Installment loans do not have credit checks

do not have credit checks

do not have credit checks

For those who are haunted by a low credit score, installment loans offer a ray of hope to them. Borrowers on this bumpy road of bad credit installment loans can apply for bad credit installment loans from installment loan direct lenders who do not check your credit score but transfer your funds directly to your bank account.

  • They are fast

Installment loans with bad credit are tailored for emergency situations such as unexpected medical bills, funeral expenses or car repairs. Installment loans transfer 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, making the loan processing much 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. Rogue lenders are on the rise nowadays and borrowers need to be more vigilant. The borrower should ensure that the lending company is licensed by the state before borrowing from them. Direct lender installment loans are the most preferred option.

Installment loans basics

Posted on by Henry Davis

More often than not, people are caught financially strained during a financial crisis. It is not uncommon to wake up to exorbitant bills, income taxes or unexpected medical bills.Your first instinct may be to seek financial aid from lending institutions, which may turn out to be a good option.

The money lending process could be fraught with pitfalls and you to be informed to make a sound decision. There are many traditional forms of lending which you can seriously consider and choose the one that meets your needs. You should also check the repayment period of the loan, how flexible it can be, all costs involved, its interest rate to make sure that you approach a trusted lending website or store.

Most installment loans have fixed interest rate

Most installment loans have fixed interest rate

Most people often choose installment loans. Installment loans online include any type of loan that is required to be paid back over time with scheduled repayments or a series of installments rather than in lump sum. This staggered payment is an advantage for individuals who cannot afford to pay back the loan in one whole lump sum. Installment loans may take the form of auto loans, personal loans or even mortgage loans.

Most installment loans have a fixed interest rate. This means the interest charged over the term of the loan does not change and remains the same as it was at the time of borrowing. Due to the fixed repayment amount, it is easy for the borrower to sort out his finances to make repayments  promptly.

Installment loans are either secured or unsecured. Secured loans are those that have collateral attached to them. In the event that the borrower defaults payment, the lender has the right to sell the collateral to to recover the outstanding amount. Secured installment loans include mortgage loans and auto loans. When requesting for an auto loan, your car is used as collateral while for mortgage loans, you put down your house as security.

Unsecured loans do not have collateral attached to them. Such loans are determined by the borrower’s credit score and proof of income. If the borrower has a bad credit score, then chances of securing a loan are small. Consequently, unsecured loans always come with higher interest rates compared to secured loans. This is because the lender faces the risk of non-repayment from the borrower. Personal loans are one example of unsecured loans.

simple & fast process

simple & fast process

Most people like to apply for Installment loans as they have a simple and fast approval process. Applying for an installment loan is quite easy. The borrower fills out an application with the lender. The lender then takes the borrower through the terms of the loan, repayment schedule and the payment amounts.

The lender then advises the borrower to make higher down payments and take out a loan for a longer term to enjoy lower interest rates and lower monthly repayments. For the borrower to qualify for the loan, the lender reviews his creditworthiness to determine the amount of credit to extend. In addition to interest charges, borrowers are expected to pay other fees such as application fees, processing fees, loan origination fees and potential extra fees such as late payment fees.

Nowadays, borrowers can also apply for installment loans online. Online installment loans are quite easy to qualify for. You must have a checking or savings account that has been open for at least one month. This is because online installment loans are transferred directly into your savings account. Secondly, you must be at least age of 18 years to be eligible for an installment loan. Thirdly, you must have a steady and regular income as this guarantees that you are in a position to make repayments promptly.

Lastly, when applying for an installment loan online, you must provide a valid Social Security Number or Individual Taxpayer Identification Number.

Installment loans and bad credit

Installment loans & bad credit

Installment loans & bad credit

Most people have a messed up financial past which adversely affects their credit score which makes convincing a lender to lend them money quite hard. Installment loans save you from this hassle as it approves payday installment loans online for borrowers with bad credit and even those with no credit. Installment loans can be used to repair credit for people with installment loans for bad credit as they create a history of prompt repayments over time.

Merits and demerits of installment loans

Installment loans are an option for many due to the benefits they bring. They are fast and are obtained at substantially low interest rates than other forms of lending such as payday loans. Installment loans are flexible especially when they are long-term as they are tailored best to match the borrower’s ability to repay the loan.

Despite the merits, the borrower is at risk of losing his property in the event that he defaults payment. In this case, his credit score is also likely to get hurt.

Payday loans vs installment loans

Posted on by George

There are many different types of loans for borrowers to choose from. Car title loans, mortgages, consolidated loans, payday loans, personal loans and loans from insurance policies are all examples. Many of these loans are considered installment loans because the borrower pays the lender back in scheduled monthly payments. A payday loan is usually made in one repayment amount by the borrower’s next paycheck. That’s the main difference between any type of installment loan and a payday loan. However, is one better or worse than the other?

  • What is a payday loan?

What is a payday loan

What is a payday loan

Payday loans are a relatively new invention that came into existence in the early 1990s. Originally, payday lenders began exclusively as small shops where borrowers could visit them personally to apply for quick cash. Today, while those physical shops still exist, many payday loan transactions are done online from the comfort of one’s very own home.

Taking out a payday loan is one of the fastest and best ways to get instant cash. No matter what your emergency is, applying for a payday loan will get you the needed amount of money in no time. Since the service is really fast and easy to get approval for (you usually get no credit check payday loans), payday loans have very high interest rates which are higher than conventional bank loans. That’s because payday loan lenders take a risk in not seeking collateral from borrowers, only asking for basic personal information and lending money to applicants with bad credit. With payday loans, the borrower usually borrows an amount of money that he is confident of  repaying on his next payday. Being late in repayment will result in hefty penalties.

  • Payday loans advantages

There are many advantages of payday loans.

1. Very easy to obtain

Just about anyone with a stable job can apply for a payday loan.

2. Really fast

All you have to do is fill out an application and in a few minutes, you will be approved and have the cash you need. The loan amount can also be transferred to your bank account.

3. Very convenient

Payday loan companies are located throughout most cities and are really easy to find. Nowdays, there are many online payday loan services. This means when you are ready to take out a loan, there is always going to be one available somewhere near you.

4. Always a last resort option

When there seems to be no way to get out of a difficult financial situation  payday loans are always there as a last resort option. Since their terms are relatively lenient, payday lenders will provide instant cash  even when no other options are available.

  • Payday loans disadvantages

It’s expensive

It’s expensive

There are a few downsides to payday loans that are worth considering before taking out a payday loan.

1. It’s expensive

The interest rates of a payday loan are known to be some of the highest. For many borrowers though, the convenience and speed of being able to obtain money with a fast payday loan when it’s needed is enough to make up for the high interest rate that comes with one.

2. Scams

There are some scam lending companies, so it is important to know you are dealing with a qualified and legitimate lending company before taking out the loan.

3. Borrowing can become cyclical

It’s important that you do a careful financial planning to prevent lagging behind on your repayments. It’s easy for you to fall into a debt cycle that only gets worse over time.

  • What are installment loans?

installment loans?

installment loans?

An installment loan is a loan in which the principal and interest are repaid in equal installments at scheduled intervals (usually monthly). Installment loans are considered to be less risky and cheaper to borrow than payday and title loans. The repayment terms of an installment loan can be as short as a few months or as long as 20 years. Installment loans are usually secured by the personal property of the borrower.

Installment loans have been around much longer than the 90s. They were initially offered only by small, independent lenders, but eventually were adopted by most major banks.

installments at scheduled intervals over an agreed period of time.

Installment loans typically grant borrowers much larger amounts than payday loans. For $1,000 to $10,000, borrowers can approach installment lenders for a loan to pay off recurring bills, home mortgages or medical expenses.

Installment loans are usually repaid over a long period of time which can be as long as 30 years. When taking out an installment loan, the borrower must use a lending institution that operates in the same state where he is staying in as all installment loans are serviced locally.

Similar to payday loans, you can get Installment loans for bad credit or installment loans with no credit check at all.

Installment loans are fast as they take only one business day for the money to be deposited into the borrower’s bank account.

  • Installment loans advantages

Similar to payday loans, there are a lot of installment loan advantages such as:

1. Predictable monthly payments

When you take out an installment loan, there is a fixed interest rate. Your payments will always be the same because the interest rate is already set up at the time when you take out the loan. You will know exactly how much to pay every month.

2. Longer terms

The repayment terms of an installment loan can be as long as 20 years or even more.

3. Easy and fast

It’s very fast to get your hands on the money when you take out an installment loan. Usually, you can get the money deposited directly into your account in just a couple of days after being approved for the loan. Otherwise, you may get the loan amount in cash.

  • Installment loans disadvantages

There are some disadvantages in installment loans that are worth careful consideration before signing up for one:

1. High interest

Even though the APR (annual percentage rate) of an installment loan is not as high as that of a payday loan, it’s still going to be high. After making the payments in full, you can even end up paying more than you would with a payday loan.

2. Penalties for missed payments

If you fail to make your payments on time, it can cost you a lot more than you thought.

3. Personal property risk

There are types of installment loans that require you to put up your personal property as collateral.

  • Payday loans and installment loans differences

Payday loans and installment loans differences

Payday loans and installment loans differences

Both payday loans and Installment loans are considered to be “high-cost, small-dollar” loans. Usually, they come with high interest rates and are extended to people with rather imperfect credit scores or with a specific income level. Even though the two types of loans are similar, there can be some big differences too.

1. Payday loans range from $100 to $1500; installments loans range from $150 to several thousands of dollars.

2. Payday loans are short term and are to be paid back within 30 days. The shortest tenure for installment loans are a few months.

3. Payday loans are repaid through a post-dated check; installment loans are directly withdrawn or paid using a check each month.

4. Payday loan’s APR can be as much as 390%; APR on an installment loan ranges from 25 to 100%.

5. Payday loans are unsecured; installment loans are usually secured but can be unsecured too.

6. Payday loans can be rolled over when it’s due (plus new fees); installment loans can be renewed every few months (with additional fees and interest).

  • Which loan should you get?

There are a lot of things to consider when deciding

What Are Installment Loans?

Posted on by Amy

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.