We’re sure you’ll agree with us – borrowing money sucks. However, that has changed radically since the advent of the internet. Gone is the hassle of having to join long queues at the bank to fill out tiresome long forms or the embarrassing ordeal of borrowing money from family and friends.
At the click of a button, you can now easily access various types of loans offered by a myriad of online money lenders.
However, which type of loan is suitable for your needs? An online installment loan with no credit check is a common type of loan offered by banks, installment loan lenders, and other lending institutions. Installment loans no credit check is actually a misnomer. There may always be some kind of credit check, a soft check in most cases.
To determine whether an installment loan is for you, let’s take a broad look at some of its features, advantages, and things to look out for when borrowing online. On top of that you are probably looking for no credit checks (hard credit checks, soft check may be performed) or have bad credit.
You are probably looking for a direct installment and worried about a middleman taking his cut. The reality is if you use a site such as ours we have a conduit to many direct installment loan lenders and as we can process many of them at once there is more chance of you getting the installment loan that you need.
These lenders are interested in lending you cash providing your a basic credit check works out in your favor. Even if you have bad credit! Fill in the form above this article to get started. You can pay back installment loans with monthly payments.
As its name implies, an installment loan is one which allows you to borrow a fixed amount upfront and repay on a fixed schedule throughout the loan tenure – in bite-sized and manageable amounts. These fixed features introduce predictability – an element which you’d learn to appreciate. Having bad credit is not an issue as the higher interest rates compensate the lender.
Here are some of the things to look out for.
As you know exactly the amount you’re expected to repay monthly, you can exercise better control over your monthly budget. Online installment loans are likely to benefit people with a financial emergency or a very lucrative investment or business opportunity but couldn’t secure a bank loan.
When you can get the money to achieve what you want in life without having to worry about a humongous lump sum repayment, installment loans seem like a perennial crowd-pleaser. However, there’s a catch.
The interest rate stays constant
Generally, these loans have a fixed interest rate repayments. This means that the interest rate stays constant throughout the loan tenure and the borrower repays the same amount every month until the loan is fully paid up. Bad credit clients means that the lenders have to change higher interest rates though
As the interest rate stays constant whatever the market conditions, fixed-rate installment loans tend to have a higher rate than variable interest rate installment loans.
A variable interest rate loan is one which your monthly repayment amount will change whenever its interest rate fluctuates.
The initial interest rate for variable rate loans is usually slightly lower than that of their fixed rate counterparts. Due to the lower initial monthly repayments, borrowers of a variable rate loan often qualify for a higher loan amount. However, its interest rate will be adjusted periodically to reflect economic situations.
So if rates fall, the variable interest rate of an installment loan normally drops. If rates increase, the variable interest rate will follow suit. It’s important for you to consider the pros and cons of these different types of installment loans before committing to one. So what are the added advantages of taking out monthly payment loans online?
Advantages of taking out no credit check (hard check, soft check may be done) installment loans online
1. Fast set-up
All you need to do is fill out a short application form at a reliable online lender website and your loan could be approved in a matter of a few days or perhaps within 24 hours. When your loan is approved, the online lender will deposit the loan amount into your bank account. This means you can conveniently withdraw the much-needed cash at an ATM anytime.
2.Installment loans No credit checks (soft check only) for bad credit
Why are direct online lenders able to approve loan applications so swiftly? That’s because they don’t usually check the borrower’s credit history. A bank loan application has a longer approval time as the bank will conduct checks on the borrower’s credit history. If you have a checkered credit past, it’s likely that your loan application will be rejected by the bank. If you’re in urgent need of cash, there’s no time to lose in waiting for your loan application to be approved, if it gets approved at all. Try and get an installment loan no credit check (i.e. hard credit check, soft check may be performed) since this will allow you to get the cash that you need with a faster approval process and be able to get the money by nearly the same business day.
3. 24/7 convenience
You have the luxury of applying for installment loans online anytime, anywhere. No more having to join the long bank queues or take time off from work just to be at the bank during their opening hours to settle your loan application. You can even submit your application when you need to in the middle of the night if you have to. In spite of the many advantages of applying for an installment loan online, we can’t emphasize the importance of exercising caution enough.
Do your homework before borrowing online
When it comes to financial matters, especially when applying for online installment loans, it pays to take extra precaution. You want to be able to secure your loan quickly, not lose sleep over it.
1. Personal information is protected
Credible online lending websites have reliable security systems in place so that your personal information which you shared when filling out the application form and your transactions with the company wouldn’t be stolen or shared. Their URLs usually start with an “https” which means these sites have been developed for secure online transactions as a priority.
2. Customer service team with real human consultants
Legitimate direct lenders have a stellar customer care team whom you can call and speak to a human customer care consultant. Beware of online lenders who only have an automated phone system. You should be able to talk to someone over the phone who will be able to address your concerns and answer all the questions you may have about the loan process.
3. Ask about the APR (annual percentage rate)
An ARP is the exact interest rate which you’ll be paying annually. It’s the fee of the direct lender plus annual interest charges. Sometimes, a lender may charge a lower interest rate but include high fees while others do the opposite. Hence, when you’re given a periodic interest rate, that doesn’t reflect the real cost of financing the online installment loan. An ARP offers a more accurate reflection. It will be able to give you the exact amount of interest that you will be paying for the whole year that you have the loan. This can be very important when it comes to choosing the right loan for you since this can show you if the rate of interest is as affordable as the lender says it is. ARPs also help you figure out how you can fit repaying the loan into your budget.
4. Repay on time
Only borrow the amount you’re confident of making timely monthly repayments for. Not only are online installment loans expensive to borrow, if you default repayments regularly and should the direct lender report it to the credit bureaus, but your credit score could also take a bad hit. You could also be slapped with hefty late-payment fees. The last thing you want to do is take out a payday loan to settle your monthly repayments for the installment loan. Indebtedness is a bottomless pit.