Online Installment Loans
Online installment loans range from small amounts around $200 up to tens of thousands of dollars and are not intended to be repaid in full at the next payday. Monthly repayments are extended over a period of time.
How installment loans work
Installment loans are of two types – closed-end loans and unsecured/secured loans.
- Closed/fixed term loan – these have a set date of starting and ending, and the determination of the dates happens in the application stage of the loan. You receive the loan funds on the set date, and then proceed to repay the money in regular installments, which also include a portion of the principal and interest.
- Unsecured/secured – you can refer to unsecured loans as signature loans, since you secure them only through your signed contract that represents your promise to repay the money. Secured loans, on the other hand, have collateral that acts as a backing, and the lender can seize the collateral if you fail to pay. For instance, mortgages are secure loans because the property backs them up. Secured loans are good ways of getting loans at low interest rates.
When should I use an online installment loan?
A borrower should consider an installment loan if they have larger expenses or needs as the interest is lower than other unsecured bad credit loans. There are also other types of loans for bad credit like signature loans.
Online Installment loans and a Bad Credit Score
A vital element of online installment loans is your credit score so if you know in advance that you may be applying then you stand a much better chance if you pay attention to this ahead of your cash loan application.
There are plenty of credit score tools online like Experian that can give you this information.
Uses of online installment loans
These loans are useful for purchasing more expensive items or services such as building, cars, education, white goods, paying down existing higher interest debt and so on.
Note that it rarely makes sense to borrow to buy a depreciating asset. You should borrow when you use the money to increase your productivity.
Should I use installment loans to repay payday loans
If you already have too many quick payday loans you may want to consider using an installment loan. It may work out but longer term you should use a consolidation loan. Ipass can offer you this excellent service to reduce your existing debts.
Pros of an online installment loan?
Monthly Repayments
Loan repayments are set up in advance so you know the amount you will be repaid with a fixed rate of interest, the payments remain constant and you can calculate what you exactly need to pay back from your next paycheck.
Note that these long-term loans may also carry a higher interest rate than other loan types so it is important to stick to your repayment schedule to avoid penalties and compounding interest on top of interest.
Installment Loans Have Fast Approval
From the time you submit your application until you receive funds can be as low as a few days once your application was successful.
Higher Loan Amounts
Online installment loans have a long loan duration and lenders are able to offer a higher cash advance loan amount than a short term payday loan
Cons Of Online Installment Loans
Payments are higher than traditional loans but not as high as a payday loan. Do your homework and compare both as by the time you have repaid in full with all interest and fees it may have been better just to take out a payday loan in the case where you only needed the money for a few weeks.
If you begin to miss deadlines for payments, this can result in larger fees and sanctions that can really increase the cost.
In some cases, loans may be secured on your assets like title loans, if you fail to pay then these can be seized in order to pay off your debt.
Which type of loan is suitable for you?
So summarizing the above you must think how much you need and for how long you need to borrow for in an almost instant payday loan. Is it for a quick 1 or 2 weeks or do you want to pay back over months?
Obviously, for a larger amount and longer periods, you should probably go for an installment loan with no credit check.
Best options for installment loans for bad credit
The key thing to understand is that many direct lenders of installment loans for bad credit will focus as much on your credit score as they will on your ability to repay the loan. The credit score may bring to the surface some of your financial struggles from past times. But, what will also be closely examined is whether you have a steady income source and a valid bank account.
Some of the features of an installment loan that may interest you are as follows:
- The amount of loan that a lender may be willing to offer you may vary
- Different companies will have different duration or loan terms
- Each company will process loans in a different way and take varying amounts of time doing so
- Different types of fees and charges in the loan agreement
Please note: Installment loans are not the only solution to address your financial difficulty. There are many other options worth exploring, such as credit protection on your checking account. However, if you do decide to go for an installment loan, then understand that we are not direct lenders of such loans.
We are not involved in any decision making or influencing the decisions of lenders. We are also not responsible for their actions or decisions. We are simply providing information. We always recommend that you thoroughly understand the terms and conditions of the lender that you plan to work with.
Is your credit rating bad?
In this case, you are more likely to be accepted for a payday loan.
Can you manage the payments? Be honest with yourself and think if you really need to purchase the required goods or service and can you afford the monthly payday installments.
Take your time to consider all options and remember it’s not good to borrow and to buy something that will not increase your earning power. If you are worried about your credit score, you can check out lenders who offer payday loans with no credit check.
Installment loans no credit checks
Every short-term loan has its own level of risk, and installment loans are no different. However, they can be a reasonable alternative to traditional loans and other personal loans like signature loans.
Conventional loans are offered as per a borrower’s income levels. They also have a fixed repayment schedule. There are a time limit and a borrowing limit in a conventional loan. Hence, even if a borrower wanted more money, he/she cannot possibly go beyond a certain level (constrained by income).
It is also important to refrain from financing a lifestyle by constantly borrowing and then making repayments on those borrowings. If this is indeed the case, then installment loans present a useful alternative.
No credit check installment loans when you have bad credit
Banks and traditional financial institutions aren’t too keen on lending to customers with bad credit scores. People with a less than desirable credit score can find installment loans no credit check (soft check performed) as a useful option. Keep in mind that installment loan lenders also evaluate your financial standing.
Banks do no credit check loans!
Banks want to establish your ability to repay the cash loan. For that, they will analyze your household monthly revenue and other details. The difference between them and a traditional lender is the flexibility with which installment loan lenders go about this process. They are not as strict as conventional lenders might be.
No Credit Check Installment Loans Need A Bank Account
Access to credit without a bank account is extremely difficult. This happens to be the case because credit loan lenders also look for some kind of assurance that you will pay them back.
Just because credit loans do not come with extensive checks and conventional processes, that does not mean the lender will not evaluate your file thoroughly. The evaluation may happen in several ways.
The concept of No credit check loans (i.e. no hard check)
For you to understand this concept, you should know that lenders usually perform a credit check of potential borrowers.
When it comes to installment loans a no credit check actually means that a soft check done. This is a background check to see if you are not a very big risk.
What is a risk to a no credit check lender?
A risk for a lender is someone who has previously defaulted on an installment loan. Someone who has been in work for less than 3 months or someone who has not been at their address for more than 3 months.
No Credit check direct lenders or aggregators?
Aggregators manage most of the online instant payday loan lender websites instead of actual lenders. They are the kings of the internet who funnel in leads to the direct lenders. The plus side of these websites is they check lots of lenders at once to get you a loan. The downside is the installment loan could be more expensive.
Note that we are not suggesting that installment loans no credit check (i.e. hard check) must be accessed from direct lenders only; we are just saying that it is good to consider it as an option. In addition, keep in mind that this is a contract between the lender and you.
What are the specific “no credit checks”
The direct lenders do soft credit checks that are minimal, and this is in order to establish:
- Your identity
- Your previous repayment history (in case you have taken out loans before)
- Your ability to pay back the loan
When the lender verifies that the borrower passes the checks, and the applicant has a steady source of income, then the loan is approved to the borrower.
Installment loans no credit checks and guaranteed loans?
Guaranteed installment loans direct lenders only are typically unlike regular loans since the lender grants them without many requirements and they are online.
If approved for a no credit check installment loan you can get cash as soon as the same day
When the loan is approved for the borrower, he might be able to have the money deposit in the bank account even on the same day. This quickness of processing transactions is due to the short loan application form that does not need much paperwork, resulting in faster processing times.
Benefits of no credit check installment loans
- Bad credit scores welcome
- Lightning-fast transaction speed, even more so during regular working hours on weekdays
- Collateral not a necessity
- Higher convenience as compared to traditional borrowing
- A direct lender would maintain confidentiality and is a source of instant funding
- A quick way of addressing emergency situations
The acceptance rate of no credit check installment loans
The acceptance rate for loans is relatively much higher. Another added benefit is the absence of any extra processing fees. The whole process is less time consuming as no extra information is requested from you.
All installment websites should now have SSL encryption
If data privacy and consumer confidentiality are what worries you, then fear not. The entire application for a payday loan is filled and processed online. The decision on your application also comes in quickly. The authorities have also placed strict laws to protect your sensitive personal information.
What to look out from the no credit check lenders?
Note: A privacy policy of the lender is a must on the homepage, as per federal and state law. The privacy policy should clearly state what user information is to be collected and how it is to be used. If the company that you borrowed from does not have a clearly stated privacy policy on its homepage, then feel free to seek legal counsel.
Should I get a no credit check installment loan?
Installment loans with no credit checks may be a viable option if you are struggling with your credit score, compared to traditional loans. However, they are not the sole solution out there, and it is good if you explore other financial solutions.
Note to readers: We would like to clarify that we are not affiliated with any lender or broker. We do not make decisions about lending, neither do we influence the decisions that lenders take. We do not have any role in evaluating an applicant credit and we do not lend out money either. All decisions taken by lenders are independent and we are not responsible for their actions.