Installment loans is the type of loan where you are allowed to borrow an amount of money at once. Then, you establish with the lender a fixed number of payments, which are called installments. The amounts usually don’t change unless you have a variable interest rate.
Now, there’s actually been a lot of confusion with what is an online installment loan. The name installment loan is a general term that refers to the majority of loans, both personal and commercial, as long as they are repaid on a regular basis and usually they have flexible terms and lower interest rates than any other type of loan.
A few examples of installment loans include auto loans, mortgage loans, personal loans, and student loans.
Now that applications can be done via the internet, there is a chance to get online installment loans without leaving your house, allowing you to save time and choose wisely the amount of money that you actually need, and then send the application form to the lender of your choice.
Finding an honest and trustable lender where to get your installment loan online is actually quite difficult. But, in order to get into the right website to apply for a loan, you need to follow a few steps:
Look for a reliable lenders
On the internet you will find a lot of information regarding this subject, but finding legit online installment loans content actually takes time and research.
There are different lenders and each one of them is gonna try to offer you the best opportunities to get your loan, so you need to look carefully for those that actually want you to solve your needs with the money you are going to borrow from them.
Fill up the application form
Once you decide which lender you are going to use. It’s time to fill up the application form to start the process in order to get your loan.
Some websites will have the slogan “online installment loans – instant approval” so you can get more excited about it. But, a trustable lender takes its time to actually check your financial conditions so they can make you an optimal proposal.
Usually, the form will require information like: name, phone number, zip code, email, state. There are others however, that will ask for more details like the reasons why you are asking for the loan, how good your credit score is, etc.
Wait for the callback
Now that you have filled and sent the application form, all you have to do is wait for the lender customer service to call you. This usually takes between 24 and 48 hours, since they will analyze the information you sent.
Paying off an installment loan is actually a matter of control in your personal finances, so this can actually be a challenge if you don’t have a budget to support your goals.
However, you can take in count these are 4 tips you can follow to pay quickly pay off your loans:
1- Submit more than one payment per month
Let’s say that you agree with a lender for a regular payment each month. If you submit more than one “installment” each month you’ll be able to get out of debt faster.
To do this, you need to confirm with your lender that you won’t be penalized for any prepayments that you make.
2- Round up your payments
You may not be able to make more than 1 monthly payment, but what you can do is add some extra money to each month.
Let’s say that your installment is $89.99. You can pay instead $100 each month and would drastically decrease the amount of times you need to pay.
3- Have another income stream
If you are able to find some extra cash, you’ll be able to pay off your installment loan in the blink of an eye. Selling items online or considering a part-time job are some of the ways you can use to accumulate income and send it to your lender as additional payments.
4- Ask about financial discounts
There are lenders that can provide you an Annual Percentage Rate discount for different reasons, for example, being a regular client or sign up for automatic debits in your checking account.
Installment loans can actually affect your credit score in many ways, actually, a lot of people use it to build credit.
But, how do they do that?
Well, first. If you pay on time and the lender reports your financial activity to the credit bureaus. Remember that being on time is one of the good influences in your credit score.ç
Another way you can use is diversifying your type of credit. Besides having your installment loans you can try with credit cards. This will pump up your score since you use a lot of what the financial system offers you.
Finally, did you know that you can actually benefit your credit score if you pay debt with more debt?
This means that if you take for example an installment loan to pay off your credit cards, you may be able to help your record, since this reduces your credit utilization ratio.
If it’s the first time you borrow money and you go for an online installment loan with no credit check, then this is one of the best ways to build your credit. But you need to be sure that you actually have the power to pay off all the debt you may incur.