Wouldn’t it be nice if every time you had a financial emergency you had the means to take care of it on hand? You know, financial emergencies, like when your car breaks down out of the blue or when you need to have your furnace serviced. No matter how much budgeting and saving you do, there always seems to be something that comes up that you need cash for. While some might be able to head over to the local bank and dip into their savings, obtain a bank loan, or charge it to their credit cards and pay for it later, not everyone has those options.
You Need the Cash but Can’t Get Approved
The troubling thing about trying to take out a traditional loan is that you need to meet a lot of requirements. When applying for a traditional loan, you’re required to have a high credit score, an established bank account, a decent and reliable salary and, in some cases, collateral. Getting approved for fast cash can be an uphill battle for the average consumer, and when you’re dealing with a financial emergency time is of the essence. A faster solution to your money needs is applying for an installment loan.
What is an Installment Loan?
Installment loans are short-term loans. You can apply for installment loans online through several service providers and receive a cash deposit in a short period of time. Unlike payday loans, installment loans provide a longer time frame for repayment. Approved applicants can break the loan and interest payments up into several small payments.
What are the Benefits of Installment Loans?
Installment loans have a plethora of benefits that consumers of diverse circumstances can appreciate. Some of them include:
- Online application – online applications allow you to apply for installment loans fast. By answering a few questions about your financial status, employment, and banking account you can complete the application in minutes.
- Quick approvals – unlike bank loans, which can take time to receive a response from, installment loan applications are approved in minutes allowing you to handle that emergency sooner rather than later.
- Minimal Requirements – you don’t have to be the model consumer with perfect credit to get approved for an installment loan. In most cases, the only requirements are that you be at least 18 years of age, have a checking or savings account, and have a source of income. Not to mention, most installment loan companies don’t do a credit check.
- Flexible Repayment Options – Unlike payday loans that require you to have the full balance within 14-30 days to prevent falling further into debt, installment loans provide a more convenient approach to repaying your debt. Approved applicants are offered the option to pay the balance in full or schedule multiple payment dates to fit in their budget.
How to Apply for an Installment Loan
Seeing the benefits in obtaining an emergency loan will likely make you want to hop online and start filling out applications. Here is a step by step guide on how to apply.
- Search the internet for reputable installment loan companies. Be sure to check out reviews as not all companies are legitimate or reliable.
- Complete the application online by answering each question honestly.
- Hit send and wait for your loan status (You may be required to provide information prior to being approved such as the last bank statement as proof of income or direct deposit).
- Upon receiving your approval notice, you’ll wait for a representative to contact you to verify information.
- Receive your cash within 24-48 hours
Ideally, installment loans are best used when trying to get out of a short term financial jam. They shouldn’t be used as a means for getting out of long-term debt. Here are some tips for being a responsible borrower so that you can continue to reap the benefits of installment loans:
- Only borrow what you can afford to repay
- Do not take out more than one loan
- Stick to the payment arrangements
- Speak up if you run into an issue – don’t ignore the loan company
Installment loans can be a real lifesaver – at least when it comes to financial emergencies. They provide you with the immediate cash you need without the extra stuff that sometimes comes with traditional lending options. As long as you find a good loan provider, follow the rules, and repay your loan you’ll find this to be a backup plan you can rely on time and time again.