Installment loans are a type of personal loan where you get a lump sum of money upfront and repay it in fixed monthly payments. These personal installment loans can be used for debt consolidation, medical bills or auto loans. With fixed monthly payments you know exactly how much you need to pay each month making budgeting easier

Features

• Flexible Terms. Installment loans offer flexible terms, you can choose repayment periods that suits your financial situation. Whether you need long term installment loans or short term solutions you can find an option that fits your needs.

• Multiple Options. There are secured loans which require collateral and unsecured loan options. This gives you the option to choose the best installment loan based on your creditworthiness and financial goals.

• Online Convenience. Online installment loans allows you to apply from anywhere, at any time. These online loans streamlines the application and approval process making it easier for you to get funds faster.

• Credit Union Participation. Credit unions often offer installment loans with better terms and lower interest rates. These financial institutions are known for their customer friendly policies and can be a great option for those with fair credit or bad credit.

Pros and Cons

Pros

1. Fixed Payments. With a personal installment loan, you get equal monthly payments, making it easier to budget and plan your finances. This is one of the best features of the best installment loans.

2. Credit Score Improvement. Making on time payments on installment loans online will positively impact your credit score as these payments are reported to major credit bureaus. This will help build your credit history over time.

3. Debt Consolidation. Installment loans work great for debt consolidation, you can combine high interest debts like credit card debt into one loan with fixed interest rates and often lower monthly payments.

Cons

1. Origination Fees and Charges. Some online installment loans have origination fees and other loan charges that adds to the cost of borrowing. These extra costs can be a burden to some borrowers.

2. Credit Report Impact. Applying for multiple installment loans will involve a hard credit inquiry which can negatively impact your credit report and credit scores. Too many inquiries can be seen as a red flag by lenders.

3. Risk of Missed Payments. If you miss payments it can lead to late fees and negatively affect your credit history. Missed payments are reported to the three major credit bureaus which can lower your credit score and create financial problems.

How to Apply for an Installment Loan?

1. Choose A Lender. Select a reputable lender, online or physical, that complies with state laws and federal regulations.

2. Prepare Required Documents. Gather required documents such as pay stub, social security number, bank account information and proof of income.

3. Fill Out The Application. Fill out the loan application form with personal details, employment information and loan amount. Submit online or in person.

4. Review The Loan Agreement. Review the loan agreement carefully, pay attention to interest rates, fees, repayment terms and due date.

5. Get Loan Proceeds. Once approved, get the loan proceeds deposited into your bank account or prepaid card account, usually on the same business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan most payday lenders only require that borrowers:

1. Age. Applicants must be at least the age of majority, which is 18 in most states, although some states require borrowers to be 19 or 21 years old.

2. Active Checking Account. A valid and active bank account is required for the deposit of loan proceeds and for the lender to withdraw repayments.

3. Proof Of Income. Borrowers need to show proof of income, such as pay stubs, to show they can repay the loan.

4. Valid ID. Borrowers must present valid ID, which includes social security number, to verify their identity.

How to Get the Money

1. Direct Deposit. The most common way is direct deposit into your bank account. Once your payday loan application is approved, the payday lender will deposit the loan proceeds into your active checking account, usually on the same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount onto a prepaid card account. This is good for those who don’t want to use their bank account.

3. Cash. In some cases, especially with in-person payday lenders, you can get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders will give you a check for the loan amount which you can then cash or deposit into your bank account.

Payday Loan Rates

Payday loan rates usually involve fees of $10 to $30 per $100 borrowed, depending on state laws and borrowing limits. A typical fee is $15 per $100 borrowed which translates to an annual percentage rate (APR) of around 400% for a 2 week loan. For example, if you borrow $300 you would need to repay around $345 by the next payday. These rates are much higher than other types of loans such as personal loans or secured personal loans.

Payday lending is allowed in 37 states, 11 states, including Connecticut, Maryland and New York, have strict regulations or interest rate caps that prohibit or limit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often at 36% APR, to curb high cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently passed such caps, which is a growing trend to regulate payday loan rates.

The highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). On the other hand, states like Oregon (140%), Maine (228%) and Iowa (247%) have lower rates. Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend the repayment period to prevent debt traps.

Installment Loans. Apply Online

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