FAQ about Installment Loans
What are installment loans?
Installment loans are short-term loans that are intended to help with unexpected emergencies. They tend to be in smaller amounts than traditional types of loans obtained from a bank are.
What is required in order to get an installment loan?
Applicants must be at least 18 years of age and have a verifiable source of income in order to be considered for an installment loan. Consumers must have held that job for at least 90 days before applying for an installment loan and earn at least $750 per month. Many creditors also require applicants to have a checking account before they will issue any funds.
Can I get an installment loan if I have bad credit?
Yes, in most cases an installment loan is not based upon individual credit scores. Bankruptcy also does not disqualify you from obtaining an installment loan.
How long does approval normally take?
The application process only takes a few minutes to complete. Funds can be deposited into a bank account the same or next day in many cases.
How much will I be allowed to borrow?
The minimum amount borrowed is normally $100. The maximum will depend upon your income, but is typically between $500 and $1,000.
What is the repayment process like for installment loans?
You will write a postdated check for the amount borrowed plus any interest and fees. The installment lender will hold onto this check until after the specified date, at which time an electronic withdrawal will be made from your checking account to cover the loan in full. Payments can also be made on installment loans over a period of time in order to fully repay them. Each lender has different terms, so it is important to know what these are before accepting an installment loan.
What if I am unable to pay the loan in full on my next payday?
You may have the option to roll the loan over. You can elect to do this by paying a service fee for doing so, and then reissuing another postdated check in the original amount to the installment lender.
How many times may I roll my loan over?
That will depend on a number of factors. In some states, rolling over an installment loan is prohibited altogether. Other states allow installment loans to be rolled over but limit the number of times consumers may do so. There may be other limitations set by each individual lender. Rolling over an installment loan is expensive and should only be done as a last resort.
What if I am unable to repay my loan at all?
If you find yourself unable to repay your installment loan, you should immediately contact your lender. It’s quite possible that a solution can be worked out to accommodate your situation. In the event you fail to contact the lender or make additional arrangements, you could be subject to collections actions in small claims court. There could also be additional fees and penalties assessed as a result.
Can I have more than one installment loan at any given time?
This will depend on a number of factors. Some of the things that may be considered include the amount of your previous loans, repayment schedule, repayment history, and income. Installment loans carry a high level of interest; therefore, having multiple loans ongoing at any given time is strongly discouraged.
Is it safe to apply for an installment loan online?
Before doing so, you should check with the Better Business Bureau to see if there are any complaints against a particular company. If possible, call the customer service number listed on the website in order to find out if a live representative actually answers the phone.
What documents are needed in order to apply for an installment loan?
A recent paycheck stub and a cancelled bank check are usually all that’s needed in order to apply for an installment loan.
Will an installment loan affect my credit?
Possibly. If you repay the installment loan as agreed, this could help you raise your credit score. If you fail to repay the loan in a timely manner, this could negatively impact your credit score, since this information is likely to be reported to one of the three major credit reporting bureaus.
How do you help me find an installment loan company?
We take the information you provide and then look for lenders that we have partnered with in your particular area. After finding those that are a potential match, we will forward your information to them so they can contact you with more details about their services. You are under no obligation to take out an installment loan with any of the lenders we recommend. Once you find a lender you are comfortable with, you can make an appointment for an in-person consultation.
How does your service make money?
We are paid a commission for every customer we match with a lending service. That fee is paid to us directly by the loan company. This fee does not affect your interest rate or any other terms of your installment loan agreement.
Is there a fee for your services?
No, there is never a fee to the customer for matching them with an installment loan provider.
Do I need to have a fax machine?
This is not required in order to obtain an installment loan. In the rare event documents do need to be faxed, you can easily do this from a public fax machine. The lender will not need to fax any information to you because they will have already communicated with you via email.
Can the funds from my installment loan be paid directly to another creditor?
This is not normally the case. Your installment loan funds are given directly to you and then you may pay your creditor directly if you choose.
Who can I call if I have any additional questions?
You can give us a call if you need more information about installment loans in general. We are unable to answer specific questions about any particular lender. If you decide to take out an installment loan with one of the providers we recommend, you can contact that company directly for more information about the programs they offer.