The Benefits Installment Loans Present

use installment loans to get funds
We asked 300 people to vote for the most important trait in a short term personal loan and nearly 93 percent of respondents voted for “safety” as being at the very top of their “personal preference” list. We concur. Safety is indisputably the most important thing to look out for in a short term loan and that is exactly why we are going to discuss today.

Before we get into the top four reasons why installment lending are safer, we wanted to share an interesting “dig” with you. According to Wikipedia, the US Department of Defense has exempted these long term loans from legislation designed to prohibit predatory lending.

That would be huge. Considering the fact, that predatory lending is one of the prime concerns for the safety of borrowers, installment financing certainly appear to be a promising alternative to traditional payday loans and cash advance programs.

Here Are The Top Four Reasons Why An Installment Loan Is Safe:

1. The Quality Of Lenders

Since we started offering personal loans to both individuals and borrowers, we have been consistent with one criteria: every member of our lender network is pre-screened, rated, and reviewed by our internal panel of loan experts. Installment lending are no exception to this practice and we have carefully pre-screened, sorted, and rated nearly 350 additional lenders that focus on installment financing, exclusively.

Knowing that you will be working with lenders who are qualified and compliant can be a significant sigh of relief for the first time borrower.

2. The Overall Package And Terms

If you are the kind of person who enjoys reading legalese, please compare the fine print offered for installment lending and other short term loan programs. If you go through the terms clause by clause, installment loans will emerge the clear winner, primarily due to the fact that the overall bundle of terms tend to be more “borrower friendly” — and we love that.

3. No Credit Jargon

The most important reason why these are safer is the fact that in order to qualify for the loan, lenders do not emphasize on credit worthiness. In fact, most lenders do not focus on your credit profile at all. Instead, they look at the overall picture and review your financial standing and employment history as precursors demonstrating your ability to repay the loan. So, the clear check of credit criteria makes it one of the most important reasons from a safety perspective.

4. Repayment Terms Tend To Be Longer

Apart from the above, the key is that long term loans can be repaid during a term that tends to be longer than your next paycheck.

So, what’s the downside, we hear you ask? Not much, but you do need to be aware that interest rates do tend to be slightly higher, primarily due to the risk assumed by the lender. There is a solution for that as well. We have partnered with numerous lenders who specialize in providing installment financing so you can compare quotes from multiple lenders before your make your pick.

This ability to comparison shop is more empowering for the borrower and the overall results tend to be better from a consumer’s perspective.

Find the Answer to Your Question

Why is it called an “installment” loan?

Installments are the periodic payments you make to pay off the loan over time. Typically, you pay monthly, but some lenders may offer other payment options.

Why is this better than the traditional payday loan?

The major drawback of a traditional payday loan is you have to repay the entire loan on the date you get your next paycheck. Some lenders may allow you two pay periods, but that is usually the maximum repayment period. This can put a lot of pressure on your next paycheck and put you right back in the same bad situation. However, an installment loan stretches your repayment period over a longer period of time. This takes less money form each paycheck and gives you more time to get your financial situation back on track or even find an extra job.

Can I get a bigger loan with installment loans?

Possibly and here’s why. First, you have more time to pay it back so the lender feels more comfortable loaning you a higher amount. Second, your loan amount is based on many factors, primarily your job history and income. If you’ve had the same job for over two years, this shows the lender that your employment is secure and unlikely to change in the short-term. Also, the lender analyzes how much you earn to determine how much you can realistically pay back in each installment.

Do I have to be a certain age to get a loan?

You have to be a legal adult (18 years old) to apply for an installment loan.

Do I pay a fee for submitting an application?

No. There is not cost to you until you review your loan approvals, choose the one that fits you best, and then commit to the loan. The lender will clearly spell out your costs for accepting the loan. Your cost will be the interest charges and any loan fees. Typically, your cost is factored into the amount of the installment payments.

What happens if I pay late?

Lenders have varying late payment policies. Some charge you a late fee, while other offer you a grace period, or a few extra days or weeks to get caught up before they access a fee. This should be addressed in the loan paperwork. If not, ask your lender to explain how they will handle the situation. Make sure you call the lender as soon as you realize the payment will be late.

Can I qualify for a loan if I am not a U.S. citizen?

Installment loans classified as payday loans will require citizenship or residency. Other types of installment loans based on your credit history may approve loan if you have a strong U.S. credit history. You build a credit history by receiving and using credit cards, car loans, and student loans.

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