How Installment Loans Work
Installment loans may be unfamiliar to you
If you already know what an installment loan is than you may still want to read this, as we have some good information on installment loans. There are some real advantages of installment loans over other types of short term loans like: payday loans, cash advances, personal loans and unsecured short term loans.
Installment loans are unsecured loans
There are secured and unsecured loans. In the majority of cases installment loans fall under the unsecured type of short term loan. This means you do not have to give collateral in order to obtain the loan. Many other types of loans are unsecured but some are not. You have to read the fine print and make sure the lender is not asking you to pledge any kind of property or ownership in assets as collateral for the loan. Typically this is never a problem.
Installment loans do not require credit checks
Many people would not like to apply for an installment loan if they had to consent to a “hard inquiry” on their credit report. With installment loans usually there are no credit checks. This saves your credit score from dropping a few points every time you get a loan. This allows you to borrow more frequently without credit trouble than traditional lending sources. When a lender does want a credit check they make sure to get your consent first.
Installment lenders accept bankruptcy
It does not matter if you have filed for bankruptcy when it comes to installment loans. Because their are no credit checks usually lenders do not even ask if you have ever filed bankrutpcy. The installment loan lenders who do ask are usually going to offer you something like credit repair or some similar service and don’t typically use the bankruptcy as approval criteria.
Installment loans are fast
Because installment loans are generally under $1,500 the risk to lenders is low enough that they routinely get you the money within the same business day. Some lenders give you the extra cash you need within two hours. That is fast!
Installment loan applications use instant approval
When you apply for an installment loan your application takes about 3 minutes to fill out and complete. Once you are done with your application and click submit, your application is usually process within a minute or so. That is a full application and decision in under 5 minutes. That is almost instant!