Installment Loans Online: A Guide on Everything to Know

When you need cash fast, an installment loan is a good option.

Everyone runs into small roadblocks in life, some of which can be overcome with a little bit of extra cash. If your credit score is less than ideal, it’s awfully hard to get a traditional lender to give you a decent loan.

That’s why we’re going to talk about online installment loans today. Sometimes you just need a small financial boost to overcome a temporary problem, so don’t let your bad credit prohibit you from getting one. Get installment loans online.

Installment Loans Online

What Is an Installment Loan?

An installment loan is smaller than a traditional loan and larger than a payday loan; it comes in a fixed amount and is usually obtained for a specific reason. Most student loans, car payments, and personal loans would be considered installment loans because you pay them back over a certain period with interest fees.

The difference between an installment loan and a traditional loan is the period of time that the repayment occurs within. The term is usually about 6 months. Because they’re less regulated, they’re best for people with bad credit, but the interest rates are usually much higher.

To get an installment loan online, you’ll deal with a specialized online lender. Many borrowers find the online lending process much faster and easier to deal with than the traditional process. Bonsai finance has a great rundown about this on their site.

How to Get Installment Loans Online

There are a few main things you’ll need to provide in order to begin the installment loan process online. 

Have proof of your income. It doesn’t matter if you work full-time, part-time, or receive disability or welfare payments. You also need bank account information so that the loan can go into your account.

Most online installment loans will require you to give proof of your citizenship and something showing that you meet age requirements. A valid government ID or a PR card should work.

It’s rare that an installment loan lender will require a credit check, but you may want to prepare for one in some cases.

When searching for the right installment loan, look at interest rates, terms, and APR. In some cases, it might be more beneficial to get a low-limit credit card or a payday loan.

Why Go Online?

Here are some pros and a few cons for getting an installment loan online.

The processing times for online installment loan applications are usually a lot lower than offline. In some cases, it’s even possible to get approved and start the lending process within minutes. As we said before, these lenders will usually accept applicants with bad credit, sometimes not even requiring a credit check at all.

On the other hand, you can be certain that fees will be higher as a result of the ease of getting the loan. The APR usually ends up being significantly higher with online installment loans, which is why you should only seek one out if it’s absolutely necessary.

Figure Out Your Options

Before you decide to apply for installment loans online, you should always weigh your borrowing options. Installment loans aren’t suitable in every circumstance, but if you need a significant amount of money to take care of something quickly, it might be your best bet.

Pro Tip: When it comes to managing your debts/expenses it becomes very difficult to keep a track of it. With tools such as QuickBooks cloud from quickbooks hosting providers you can easily keep an eye on all your expenses remotely from anywhere using citrix virtual desktop from Apps4Rent.

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