When you need cash immediately, you don’t have the time to apply for a bank loan. An online installment loan is one of the small-funding options available for people with a steady and stable job. As you can probably guess from the name, an installment loan can be paid in installments, often with a term between 6 and 18 months, depending on the lender and other factors. Below are some quick facts for your help.
Are online installment loans same as cash advance loans?
No. A cash advance loan or a payday loan offers a short-term advance, not exceeding $1000. Also, the loan must be repaid within four weeks or on the next payday of the applicant. An online installment loan allows you to repay the amount in installments, over a period of 6 to 18 months. Also, you can borrow a much-larger amount, often up to $3,000, depending on the state. However, for both loans, the credit score of the applicant isn’t a matter of concern for the lender, and the basic requirements are almost the same. You must be a resident of the United States, must be of 18 years or more, and should have a stable job.
Things to know
The best thing about online installment loans is quick approval. There are websites, where you can apply for the loan, and lenders can approve your application in 24 hours. In fact, in many cases, funds are sent on the next business day. What’s even better is you can repay the loan ahead of the term, and there are no prepayment penalties with anonlineinstallment loan. Just like payday loans, you don’t have to pledge any security or collateral, which safeguards your personal assets. It is also possible to get an installment loan with a bad credit score. In all likeliness, the lender will check your paycheck and employment details, and if you have a stable job with a steady income, your application will be approved.
While installment loans are handy, you need to consider repaying on time, or else, defaults may affect your credit score. It is also a good idea to read the relevant terms of lending, but you can be assured that this is a highly regulated industry, and therefore, there is no scope for hidden charges. Most lenders are flexible with their terms, although the approved loan amount largely depends on your income.