You’re going about your life, the bills are paid, and then boom! Out of nowhere, you’re hit with an expensive car repair, a pile of medical bills, or other expense that isn’t in the budget.
This happens to all of us at some point, and it creates stress that none of us need. If you need a quick cash infusion to get you through, online installment loans could be the answer you’re looking for.
How do they actually work, and are they a good choice for your finances?
The Online Installment Loan Process
The process of applying for, receiving and paying off an online installment loan is simple. In fact, it involves less time than most traditional lending processes.
1. Choose a Lender
Choosing your lender may be the most important part of getting your installment loan. Remember, this lender will be handling your credit information. Find a lender with a positive reputation for honesty and security.
Make sure that the lender is committed to fair lending as well. This tells you that you won’t be wasting your time when you apply.
2. Apply Online
When you’ve selected a lender, it’s time to apply for the loan. With an online installment loan, all this happens online from the comfort of your own home. There’s no need to make an appointment with your lender or go to their place of business.
If possible, be sure to use your private Wi-Fi or internet connection at home. In general, it’s best not to use public Wi-Fi to access sensitive accounts like your online banking or credit card accounts.
3. Receive a Loan Offer
This is the best thing about an online installment loan: you can get an answer within minutes most of the time. There may be an automated system, a staff member or a combination of both that review your application.
When you get your offer, it will also outline your repayment schedule. You’ll know how much you’ll need to pay each month and how many payments to make. At this point, you can choose whether or not to accept the offer.
4. Get Your Money
If you accept your offer, the loan will start processing and you’ll soon receive your money. For our installment loans, if you accept the loan before 10:30 am Central Time, you’ll be able to receive your money the same business day. If you accept the offer later in the day, you’ll be able to receive your money the following business day.
Keep in mind, all lenders have different processing times. If you need your loan quickly, look for a lender that can provide your money the same day or the next day.
5. Maintain Your Payment Schedule
After you’ve received your loan, used it to pay the bills you needed to pay, and breathed a sigh of relief, you’ll start making your payments. The requirements will be straightforward. You’ll know how much to pay and when to pay each installment. To save money, you can choose to pay it off sooner than the payment schedule.
The Benefits of Online Installment Loans
Now that you understand how online installment loans work and what you can expect, how do you know if they’re the right solution for you? It depends on whether you’re looking for certain features.
1. Easy, Quick Processing
People need installment loans for many reasons, but one of the most common reasons is a need for transportation. If you don’t have a working vehicle, you’ll have a hard time getting to a lender to apply for a traditional loan.
With online installment loans, everything is done from the comfort of your home. It takes minimal time to apply, and you can complete the process any time it’s convenient for you.
2. Flexible Loan Amounts
While it varies from lender to lender, most online lenders have a wide range for the loan amounts they’re willing to provide. From a few hundred dollars to several thousand dollars, you’re likely to be able to get the amount you need.
Of course, it will also depend on factors like your income and your credit history.
3. Predictable Payoffs
When it comes to finances, predictability is king. You always want to know what you’ll need to pay and when you’ll need to pay it so you can budget.
With an online installment loan, you’ll have your payment plan clearly laid out from the start. It’s easy to work these payments into your budget and add reminders to your calendar so you know when a payment is due.
4. An Opportunity for Better Credit
It surprises many people to learn that an installment loan can actually help your credit. Some people think of a loan as a sign of unstable finances so they assume it will hurt their credit.
In reality, any time you’re making consistent, on-time payments, it will improve your credit. That includes the payments for your installment loan.
The only factor to keep in mind is that your credit could dip if you have more than two hard inquiries, or applications for new credit, within one year.
Think of it this way. If you don’t have enough money on hand to pay your mortgage or rent, you have at least two options. You could skip the mortgage or rent payment and take a big hit to your credit for having a delinquent account.
Your other option is to get an installment loan. You stay in good standing with your landlord or mortgage provider and, if you make all your installment payments on time, your credit goes up as a result.
How to Get Your Online Installment Loans
Income and expenses don’t always line up neatly, and online installment loans are a great way to bridge the gaps when they appear. To start the process, apply for an installment loan online today. We’d love to be your preferred lender.
Featured Photo by Jonas Leupe on Unsplash.