Think of this situation – Your kids want to go for a vacation, but you don’t have immediate funds to plan things. Or, your car has broken down and you need at least $1,500 for repairs. In such situations, applying for a traditional bank loan doesn’t make sense. After all, you need a small amount. If borrowing from a friend is not an option, you can think of an online installment loan. Before we talk about installment loans, let’s first understand the difference between this option and cash advance.
Cash advance or an installment loan?
If you need an amount not exceeding $1000, cash advance loans might seem like a better choice, although whether you get the required amount or not depends on your salary. However, both installment loans and cash advances are secured against the salary of the applicant. In case of an installment loan, you can repay the principal in easy installments, over a period of six to eighteen months. In short, if you need more money and better repayment terms, installment loans are better than payday loans.
What are the requirements?
Getting an online installment loan is as easy as you can imagine. You need to find a website that connects applicants and lenders, and to get started, just fill up the form and share the relevant details. The same will be sent to different lenders, and if your application has merit, it can be approved on the same business day. The requirements are very simple – The applicant must be a resident of the US and should of 18 years of above, and secondly, he/she must have a stable job with a steady income. In case you are wondering, your credit score is not a matter of major concern, unless you have a bad number. Lenders will usually check your employment details to verify if you are capable of repaying the loan. Also, you can repay the loan before the term, and there are no prepayment penalties with such loans.
While installment loans are great for getting quick money, do consider this option wisely, given that the interest rates can be high. Also, if you don’t repay the loan as per terms, it can have an impact on your credit score. Do your homework with regards to the lender too, but you should know that this is regulated industry, and therefore, there is barely a chance of getting duped or charged wrongly.