Not everyone is financially ready with this COVID-19 pandemic that caused us to lockdown. Our savings could have run out before it ends. How are we going to survive? Perhaps, one of the solutions that some of us are looking out is to borrow on credit.
Today, due to the prevalent use of the internet, several lending institutions made their products and services available online. Take installment loans for example. You can apply for this type of loan even in the comfort of your home.
However, you might still have doubts about whether this type of loan suits your need. You can learn more on installment loans online with Personal Money Network by visiting their site or read on the article to clear any second thoughts you have in mind.
Know the Basics of Installment Loan
An installment loan is any type of loan that is repaid on scheduled payments or installments. The payment includes the portion of the principal amount and the interest. It is determined by the amount of borrowed money, interest rate and the length of the term of the loan.
The three common examples of installment loans are mortgage loans, auto loan and personal loans. Other than the mortgage loan, most of the installment loans are fixed-rate which means the interest is fixed over the term of the loan from the time of the borrowing.
The Benefits of Online Installment Loans
When it comes to getting quick cash for emergencies, loan application online is a better idea. Why? Online installment loans have advantages especially when you need the money fast. Outlined below are the benefits of applying for installment loans online.
1. The application process is simple
If you were to apply for a traditional loan from the bank, the whole process would take you to a few weeks. Plus, there is no guarantee that your application will be approved. It is not as straightforward as you would like it to be especially if the money is intended for an emergency.
One of the best things about applying for an installment loan online is the simplicity of the application process. You can apply even in the comfort of your office or home or even when you are traveling. What you need is just a computer, smartphone or tablet. No need to sign up for a lengthy form, just fill in the needed information and you’re good to go.
You will be immediately notified if your application is approved. If the lender denied your application, you can immediately seek help from somewhere else.
Another benefit of an online installment loan is that access to funds is fast. Generally, online installment loans are deposited into your bank account as soon as the next business day! The quick access to funds allows you to cover necessary and emergency expenses right away.
As much as you want to avoid, unexpected expenses might pop up at an unwanted time. Your house might need immediate repair, your car broke or a family member might need to be brought to a hospital.
With online installment loans, these life worries are covered because of the quick access to funds. Additionally, you will repay the loan not in a lump sum but on an installment basis with smaller and more budget-friendly amounts making the loan more convenient to you.
3. Flexible Repayments
Compared to payday loans, installment loans comes with a repayment structure that makes it more manageable. Most payday loans need to be paid in full in the next paycheck which could increase financial strain to a borrower.
The reason someone might prefer installment loans is that the long-term repayment works better for them. Paying smaller amounts can allow them to pay the loan without compromising other monthly expenses. With the flexible repayment scheme, the borrower could manage to pay the loan without the need for a rollover.
4. Accessible to People with Bad Credit
For people with bad credit, chances of getting approved for a bank loan are slim. But with an online installment loan, your credit score won’t be the only deciding factor to approve your loan. There are lenders who might still approve your loan provided you meet some of these requirements:
1. The borrower is of legal age
2. A US citizen or a permanent resident
3. Has an active bank account or savings account
4. Has a stable source of income like employment or business
5. Has an active email address and valid contact number
Your financial trouble in the past that lead to a bad credit score will not hinder you from getting approved for a loan. You can still be approved if you can prove that you can afford the repayments.
5. You can have a rollover
With the flexible repayment scheme of online installment loans, you should be able to pay the loan on time. However, in cases where some unforeseen circumstances would not allow you to repay the loan, you still have an option for a rollover.
In this case, you can take another loan with easier terms to repay the first amount you borrowed. Doing this online is simple since the application is quick and easy.
Applying for an installment loan online is indeed very easy compared to procuring it from traditional channels. It is also made affordable through its repayment scheme. However, it does not mean to take it less seriously.
If possible, pay your debt on time and only borrow money that you really need. Otherwise, you might get yourself trap in more debt. Regardless of the type of loan that you avail, it is important to practice responsible borrowing.