Life is unpredictable and we are often faced with expenses that we cannot cover. For example, your car may breakdown and need repairs or you may get hospitalized and will need to pay bills not covered under insurance. If you do not have an emergency fund/savings, or if you have a job with irregular or varying income, then you may not be able to pay for the sudden expense. In such cases, you may need to take out a loan to cover the expenses.
However, if you have bad credit, then the traditional options of loans like banks, etc., may not be available to you. This is where installment loans can be of great help in getting the cash that you need urgently.
Understanding installment loans
The money associated with installment loans is disbursed in full to a borrower and it is later repaid over a period of time in several weekly or monthly payments called installments. The terms of such loans as well as the amount of money that can be borrowed are dependent on the eligibility of the borrower; also, it differs from one lender to another. It may be noted that not all states in America have installment loan lenders because of different regulations and laws in each state.
Lenders of installment loans often report the successful repayment of the loans by the borrowers to the credit agencies. This can help improve the credit score of the borrower. In addition to offering a feasible option to borrowers in relevant states to get access to instant loans, the lenders also thus assist their customers in getting loans at reduced interest rates.
When you opt for some premium options of installment loans offered by lenders, you also get access to many other helpful tools such as a receptive and amicable customer service team, an ever-present personal dashboard, and different free courses on varied financial aspects such as managing credit, etc.
Installment loans are geared towards a successful relationship between lenders and borrowers. Hence, most lenders work with the aim of providing installment loans that come with easily comprehensible, clear, and distinct terms of the loan agreement.
Eligibility criteria for installment loans
Borrowers will need to provide their job details and/or details of other regular income sources (such as disability checks, pension, etc.) to the lender when applying for installment loans. All the personal and financial data of applicants remains safe with the lenders as they do not share such information with third parties.
Listed below are some qualifications required for taking out an installment loan:
- You must be 18 years old or older
- You must be a resident of the state in which the lender is licensed to operate in
- A valid email address and a working phone number. These will be used by the lender to communicate about the status of the loan application, approval, disbursal, etc.
- A bank account with electronic transfer facility. This is where the installment loan will get transferred to by the lender.