Even with a good budgeting plan, there may be a few times in life when you find you need some extra money quickly. For example, you may have an unexpected expense, or you might need additional funds to help make a large purchase. A personal installment loan can provide a convenient, fast solution. Here are six reasons why installment loans have become so popular:
Convenient Access to Extra Money
If you need to take out a loan quickly, an installment loan can offer a handy, fast solution. For example, if there is a family emergency, or an unexpected event, or some other kind of surprise expense, you may need extra money right away. Quick access to a short-term installment loan can supply the money needed for an immediate priority, without involving a lengthy application and approval process.
Minimal Requirements to Qualify
A unique advantage that personal installment loans offer borrowers is easy approval. Short-term installment loans typically require information to satisfy only the most basic criteria for approval:
- Minimum age of 18
- Permanent resident of the United States, or qualifying state
- Source of steady income that can be confirmed
- Current bank account
- Phone number where you can be reached
- Email address
Fast Application and Approval Process
There is normally a very brief, simple process for completing applications and obtaining approvals and funding of installment loans:
- The installment loan application is typically very easy and quick to complete.
- After submitting the application, the lender reviews and verifies the borrower’s information the same day.
- After the loan is approved, the funds can be deposited into your bank account as soon as the same (in some cases) or next business day.
Low-Income Borrowers are Eligible
You do not need a high income and excellent credit to be approved for a short-term installment loan. Customers with low income who meet minimum requirements can be quickly approved for installment personal loans. A key criterion for short-term loan approval is proof of steady income of an amount sufficient to repay the loan, in keeping with the terms specified in the loan agreement.
Monthly Payments Over Time
An important benefit of installment loans is the opportunity to pay back the loan over a longer period of time than permitted by other types of short-term loans. This helps borrowers avoid the added financial burden of paying an entire loan in full, plus interest, within just a few weeks of the date the money was borrowed. Being able to pay much smaller payments over months can make a loan easier to repay, and it can help make budget planning more practical and less stressful.
Fixed Payment Amount
Installment loan payments are set up for a specified amount to be paid on your payday, monthly, semi-monthly, or according to some other incremental repayment terms. That amount does not change during the course of the loan repayment. Your installment loan payment amount remains the same for every due date throughout the agreed loan repayment period. Make sure your lender provides you with a copy of your loan agreement and that the document clearly states the amount of each payment and the total number of payments.
When You Get an Installment Loan…
Before you sign your installment loan agreement, read it thoroughly and ask any questions to make sure you clearly understand all the terms for repayment. Keep in mind that short-term installment loans are not designed to provide solutions for longer-term financial needs. So, only borrow the amount you need for immediate financial priority. When used carefully, the installment loan option provides borrowers with a great resource for obtaining money very quickly, for just about any purpose.