Depending on what kind of emergency you have faced, you are able to choose among different loan options. The most popular types of loans for any credit are payday loans online and installment loans, which are also provided via the internet application. They have some common features, however, their major characteris-tics differ much. That’s why it is recommended to learn more about the available loan types before you get started. Each type of loans has its advantages and disad-vantages. After weighing all pros and cons you will be able to take the most rea-sonable decision taking into account your current financial situation.
Installment Loans and Their Main Features
Up to $5000 can become yours if you get an installment loan online. The amount of money may vary from lender to lender, however, in any case it is several times more than the payday loan can provide you with. The reason why it is possible to apply for the larger amount of money is simple: compared to payday loans, in-stallment loan shouldn’t be paid back in a couple of weeks. The repayment term of such loan can vary from several months to several years depending on the loan lender.
Installment loan lenders offer you to get instant financial help on favorable terms: pay back each month in equal parts. The amount of money you will get will be divided for the agreed period of time plus the interest rate, which is, by the way, is going to be lower compared to the short-term loans online.
When Can an Installment Loan Be Helpful?
After you have got acquainted with the major loan features you should consider your financial situation to decide if you need exactly this type of financial help or you are looking for something else. It is not difficult to make a decision as install-ment loan is for you if you need a larger amount of money compared to the amount that can be offered by other loan lenders and the one you can repay not in one lump sum.
This type of loan is suitable for the long-term projects requiring a certain amount of money at once. It is a great way to use the help from installment lenders if you are going to start your own business, which, according to your business plan and calculations is going to be profitable so that you can give money back. You can use an installment loan online if you need to invest money in something or spend it for some more expensive purchase if you are sure that you will have enough to make the loan repayment on time.
Loan repaid in installments can also be used for unexpected financial problems if an amount of $1500 isn’t enough for you and you want to get more money than payday loan lenders can offer but pay it back not on the payday but do this during the longer period of time.
Can you qualify for an installment loan?
If you are interested in getting an installment loan, you are recommended to check out the list of qualifications. First of all, you shouldn’t be younger than 18, which is the obligatory demand for getting any type of credit, either you are going to get money via a bank or an alternative lender. Another requirement that is not less important for being approved is a regular income that can be proved.
Installment loans are given to those who are paid monthly or have some other source of income, which is stable. In case you are able to meet these two require-ments, you will be glad to find out that other basic requirements aren’t difficult to meet: have a banking account to get your money deposited, share contact infor-mation to keep in touch after you apply for the loan online and be the resident or a citizen of the country. As you can see there are not many requirements to be met, which make this type of loan a good option to choose.
Which Benefits will You Get Applying for Online Installment Loan?
- Fast online application process: Save much time filling out a short applica-tion form requiring basic personal information only;
- Guaranteed approval: Enjoy 100% approval if you are able to meet the mini-mum of requirements, which are the same as when you apply for payday loans.
- No documents are required: Benefit from the absence of both faxing and pa-perwork, the online application form is enough for getting a loan now and pay back it later.
- Get money today: Receive your loan now and repay it over time;
- Bad credit and no credit is fine: Low credit rating as well as no credit at all can’t prevent you from getting the necessary amount of money;
- Large amount of money to repay in equal parts: Up to $5000 is going to be deposited directly into your bank account the same day, which you can pay back in a set number of installments.
- Get the consultation about the loan terms via the customer support: The service woks seven days per week and is available twenty four hours a day.
What is the Difference Between Payday Loans and Installment Loans Online?
Both types of loans are rather popular nowadays as you can apply online and meet the basic requirements only. Both of them don’t have a hard credit check and approved in most cases if a customer is able to meet all obligatory re-quirements. If you have a dilemma, which loan to choose, you should first think about an amount of money you need. If it is less than $1500, then the choice should be obvious. Payday loans online are short-term loans offered for one or two weeks, which influences the amount of money you can get. In case the amount from $100 to $1500 will be enough to cover your current expendi-tures, then don’t hesitate to apply for a payday advance. However, if you need more than the mentioned loan amount, you should give preference to the in-stallment loan offered for a longer period of time as the amount of money you can get is going to be several times larger.
Both loans have their pros and cons, which makes it difficult to decided which is the better deal. They are different and should be chosen taking into account your personal wants and needs. Online payday loan is the best choice if you have faced an emergency and need money today but you know that you will get your salary in 1-2 weeks and will 100% pay it back. When you need larger amount of money, which is from $ 1500 and up to several thousands, you will definitely benefit from the loan offered for several months or even one or two years. Consider your financial situation and make the choice, which will be the right for you only.
Taking into account that payday loans have the higher interest rate, for exam-ple, if you get $100 you will have to pay back the interest rate about $15 for each $100 you borrow. However, if you take the loan for a couple of weeks only, you won’t overpay too much. Stick to the responsible lending, otherwise, your payday loan may cost you a pretty penny if you roll over it, which is even prohibited in some states. Let’s look at the interest rate of the installment loan with the fixed repayment term over the period of 60 days. Here the interest rate is going to be a bit less, however, it may vary from lender to lender. In average the interest percentage rate shouldn’t exceed 25-30%. However, if you are going to use the loan for months, it won’t cost cheap as well.
How does the Process of Applying for Installment Loan Look Like?
If you have applied for payday loan, then you should be familiar with the process of applying for the alternative source of money. It doesn’t matter what type of loan you are going to get as the process of applying online will be the same. There are several steps to take if you want to get an installment loan online:
- Find an online application form at the website of your lender;
- Provide your identification information;
- Share your Social Security Number (SSN);
- Provide your home address and zip code;
- Fill out your e-mail and telephone number;
- Choose the desired amount of loan;
- Check out all fields of the application to avoid any errors;
- Submit an application online;
- Get the loan decision.
In most cases you will get a confirmation via e-mail. That’s why it is important to give valid contact details, otherwise, the lender won’t be able to provide you with the loan as quickly as possible.
Things to Check Out Before Signing a Loan Agreement
You should understand that applying for an installment loan should take place on-ly if you really can’t do without extra financial help. Are you sure that you can af-ford paying the loan amount on the monthly basis? If yes, then you should take into account that there are many companies today that offer fast money. The number of lenders is increasing due to the fact that the demand on instant loans is growing regularly. This makes difficult to choose the right loan lender. That’s why you are recommended to check out the terms and conditions, which you are going to be provided after signing the loan agreement.
Pay attention to the structure of the lender’s website, where you should easily find contact information and everything you should know about the loan products of-fered by the lender. In case you have any questions, you should consult the cus-tomer support. If you get professional consultation anytime you need it, you may trust the lender you are going to borrow money from.
Find out more about the interest rate and make sure that you won’t overpay much. Many websites offer the online loan calculators, which are helpful when you want to know the exact amount of money that you will have to pay back, taking into account the repayment period you have chosen and the amount you want to be approved for.
Installment Loans for Bad Credit Borrowers
In case you have damaged your credit score in past, you shouldn’t worry about it now as installment lenders are ready to provide you with the instant help, regard-less your credit history. Either your score is low or you don’t have any credit histo-ry at all, you have good chances to be approved if you don’t have any difficulties meeting the requirements. You won’t need to explain what happened when you ruined your credit rating as the only thing that matters for alternative lenders is your current financial situation. If you don’t feel like having problems with monthly loan repayments, you have nothing to worry about as you will be 100% approved.
How to Borrow Bad Credit Installment Loan Reasonably
When you are thinking about the loan amount you want to get, you should stick to the wise borrowing and take the whole procedure of getting money via loan lenders seriously. Follow the rule: “Don’t borrow more than you can pay back lat-er”. Remember that monthly on your payday you are going to repay a loan amount divided into equal parts plus the interest rate. Responsible lenders never approve the loan application if think that the monthly repayment will hurt your budget. That’s why weigh all pros and cons and choose the amount of a loan you really need and find affordable for your current financial situation.
Things to Keep in Mind Repaying Your Loan Over Time
Repayment term of installment loans is going to be more advantageous than the one offered when you apply for the short-term loan, however, it doesn’t mean that you should apply for the maximum amount thinking that you can repay the loan during years. Borrow only the amount of loan, which you consider to be affordable for you to pay back monthly. Each payday you will have to give the certain amount back, which is going to be calculated on the basis of the whole amount borrowed plus monthly interest.
Keep in mind that on the one hand the longer period of loan repayment may be considered a benefit as you don’t need to pay the one lump sum immediately. But on other hand the same benefit can be considered a disadvantage if you aren’t sure that your income is stable. Make sure that during the repayment term you won’t have any financial problems. Sure that emergencies can’t be predicted but if you already know that there is a chance that you may lose your job or have problems with the repayment term due to some other reasons, you’d better think twice be-fore you get started with the application procedure.