Need quick access to over $1,000? Installment loans give you just that and offer you longer repayment terms.
A short term installment loan lets you repay the borrowed amount in fixed installments over a period of time. You have the option of applying for an installment loan online, and if you’re approved the lender will transfer the money directly into your bank account.
Just how much you can borrow and loan terms depend on the state you live in. If you apply for an online installment loan in Ohio, you won’t be offered the same terms as if you applied in Texas. Find out about the how installment loans work in the guide below.
A selection of online installment loans
Here are some loan providers that you can apply to. Note that the max loan amount is based on the lender’s max amount. The amount will vary based on your state of residence.
A selection of lender matching services
These lender matching services are not lenders, loan brokers or agents for any lender or loan broker. They also do not make credit decisions. They focus on trying to match you with a lender that might be able to provide you the funds you seek. Note that the max loan amount is based on the matching services max amount, but it will vary based on your state of residence. If you proceed with one of these services, confirm that the lender is reputable by checking with your local government.
How do installment loans actually work?
Installment loans are generally available for larger amounts than short term loans – some up to $5,000 – with the repayments being ongoing. This can be a little more financially feasible than one lump sum, as with a short term loan. Repayment terms vary depending on the state you’re applying from, but could be as long as 14 months.
You can apply for an online installment loan through a direct lender or a loan matching service. The latter helps you match your application with suitable lenders. You’re generally able to pay an installment loan off early without repayment penalties.
What features do installment loans offer?
Online installment loans come with various features, and if you’re considering applying, here’s what you should know:
- Convenient application process. You can apply conveniently online, and some lenders even provide smartphone apps. With most lenders, you can find out about your application status in minutes, and if approved you can accept the loan contract. Once you do this you can expect the money in your bank account as early as the next business day.
- Flexible eligibility criteria. Getting online installment loans with bad credit is possible, primarily because lending norms are slightly more relaxed. “No credit check” online installment loans generally don’t make typical inquiries on your credit score, but you’ll need to demonstrate how you’ll be able to repay the loan.
- Variable fees. The state you live in along with the amount of money you borrow has an effect on how much you pay in fees. Not all lenders charge the same fees, so keep this in mind when comparing your options.
- Loan amount and terms. Both these aspects depend on state laws. In some states you can borrow up to $10,000 and the repayment period can extend up to five years.
Just some of the top installment loan providers we compare
Pros and cons of installment loans
- Fast turnaround time. Providers of online installment loans tend to process your application very quickly, informing you of their decision in a matter of minutes. If you accept the loan contract, you can get your money as soon as the following business day.
- Bad credit applicants are accepted. Conventional loans normally come with stringent lending criteria, but most employed people can consider applying for online installment loans with bad credit, as long as they can show their ability to repay the loan.
- More manageable repayments structure. Unlike short term or cash advance loans that you have to repay by your next payday, you can take longer to repay your installment loan. Most lenders even give you the ability to choose between making payments once or twice a month.
- Fees. Online installment loans normally charge higher fees especially in comparison with more conventional forms of credit.
- Higher loan amounts mean higher repayments. Installment loans have higher loan amounts than standard payday loans, and while you have lower ongoing repayments because you’re paying it back over time, the APR can still be quite high, resulting in a total overall repayment. Make sure the repayments are manageable on your budget.
“I want to apply, but is there anything I should avoid?”
There are numerous instances of people taking online installment loans even though they know they might have trouble making repayments. This is a situation you should try to avoid because it can lead to additional charges, collection activity, and it can also have a negative impact on your credit score.
Once you get the loan, avoid making late payments or you could have to pay have to pay late charges, and make sure you have the required funds are in your account on every due date to avoid paying NSF fees.
Some questions you might have had about these loans
How much time do I need to complete an online application?
If you have all the required information easily accessible, completing your application should take around 5 to 10 minutes. Much the same as a short term loan.
Can anyone apply for an installment loan?
Remember that not all lenders provide installment loans in all states. In states where they do, you have to meet minimum age requirements, you should show you have a regular source of income, and you that you have an operational bank account.
What information do I have to provide to apply?
You’ll have to provide personal details, employment details, and your bank account details.
How long will an installment loan be on my credit file?
The answer to this question lies in how you’ve been making payments, your total credit limit and a whole range of other factors found here.
Are payday loans available in my state?
Compare payday loans in my state
Getting an online installment loan can be a good idea if you want some more time to repay the money you borrow, but given the choices on offer, ensure you compare a few before applying.