Everyone has emergencies that arise out of the blue and not enough in the rainy day fund to cover them. Getting your hands on cash right away can be hard. Have you tried payday loans in the past? It can be a difficult and challenging cycle to break free from. With high interest rates and fees that can cost more than the loan itself, it’s hard to break free from the cycle of debt. Another alternative to getting cash fast is through an installment loan. This type of loan can be easy to obtain, but there are some requirements you’ll need to meet first. Keep these things in mind before you go to apply for a quick installment loan.
Credit Requirements Compared To Traditional or Payday Loans
One of the biggest benefits of quick installment loans are the flexible credit requirements. This means that it is easier to obtain this type of loan as opposed to a traditional bank loan, and in most cases you’ll get your money much faster. Here are just a few comparisons:
- You’ll get your money in days compared to weeks with a traditional bank or credit union.
- Your credit score doesn’t have to be perfect to qualify.
- No collateral is required like a typical personal loan.
- There is no lengthy underwriting process involved.
- Loan terms are much shorter than traditional type loans.
- No co-signer is required.
- New customers are welcome and you don’t have to be an established member to qualify for loan terms.
Benefits are greater than a traditional payday loan because the payments are feasible and affordable and won’t drain your bank account.
Bank Account History
One requirement that you must meet is that you’ll need a solid bank account history. Your bank history should be active and not show a lot of fees or overdraft charges. Your installment loan will be deducted from your bank account, so make sure that you are able to manage the account and other withdraws that may be reoccurring through it. While an installment loan can be an affordable loan option, accruing overdraft fees or missed payment fees can make your debt spiral out of control.
Understanding The Loan Terms
With most installment loans, the terms are simple:
- Provide a valid I.D. and Social Security number.
- You must be 18 years or older.
- Have a working and long-standing checking account.
- Not be involved with an active or pending bankruptcy case.
- Provide proof of residence.
- Have a verifiable source of income.
There are specific fees and interest rates in relation to the exact amount that you plan to borrow. Many installment loans offer a variety of terms that will fit your budget. While the interest rate may be higher than a traditional loan, keep in mind that qualifying for the loan is simple and easy. With traditional loans, you’ll need to satisfy loan requirements by submitting past tax returns, and receipts for other loan payments if requested. This can take a lot of time and the overall processing can be complicated, unlike an installment loan—which is quick and easy. Ask your loan officer about the terms, payment, the time frame and what the total cost of borrowing the money will be.
Meet Minimum Income Requirements
If you have trouble with verifying your income or it’s inconsistent, it may be challenging to get approved for any loan. While the income requirements for an installment loan are less stringent than a traditional loan, you’ll still need to prove that your income is consistent. Be sure to provide documentation for all of your income in the household. If you don’t have a steady income, you may have to ask another family member to add their bank account to the loan and be on the application. This can help secure your loan and guarantee approval.
Getting an installment loan can help you gain access to cash fast, especially in an urgent situation. As long as you meet the requirements, you can be well on your way to getting your loan and paying it back in no time.