The truth is this is a fairly straightforward process much like applying for most other forms of credit. But before you can even be considered for an instalment loan, you must ask yourself some very important questions such as:
- What do I need the loan for?
- How much will I need to borrow?
- What monthly payments can I afford?
- Can I manage everything comfortably?
- Do I really need the money?
Once you’ve gone through all of these and you’re completely satisfied you are making the right call then there are a few other criteria you’ll have to meet including:
- Do you have a checking account to make payments out of?
- Are you an American Citizen?
- Are you aged 18 or over?
- Do you have employment or a regular income?
- Is your credit score decent?
If the answer to all of these questions is in the affirmative then you are ready to start shopping around for a good instalment loan provided from a reputable source. There’s just one thought to take into consideration?
My Credit Score
If your credit rating is really high or even good then you really won’t have much of a problem in getting companies to say yes. If it’s not then you may have a problem. Some companies won’t credit check you at all, though this is very rare.
Some companies will check you but will base their decision on your ability to pay right now. The important thing here is, even if your rating is poor you can still apply, so don’t be put off. In fact, once you’re accepted and you make all the payments on time, then your credit score will almost certainly improve.
Where Do I Look?
Well the obvious place to start is online, where you’ll find an array of companies and financial institutions offering all manner of instalment loans. You could start with your own bank, but this really depends on how much you need to borrow.
If it’s only a relatively small amount, there are payday loan companies who offer loans to be paid back over six, twelve or even eighteen months in some cases. The problem here is you’ll pay a great deal of interest as opposed to a three year loan from a loan company.
The choice is yours of course, but look for those lenders who carry good testimonials and who have been proven to provide a good service to their clients.
Once you’ve made a choice you can fill in their online application form, but do it completely honestly. Some companies won’t require to see any paperwork, others will, so be prepared for this. They’ll need proof of your income, status, citizenship and age, remember.
In most cases you should get a decision very quickly, though various lenders may need to verify a few things, so be patient. You should also remember, if one company turns you down it doesn’t say others will so don’t give up. But of course you’ll probably have a good idea why, as you’re the best qualified person to know your own financial situation.
Paperwork will generally be presented to you online though in some cases you may need to do this via the postal system. You can sign for this electronically of course, but make sure you read everything thoroughly, and be very aware of the small print and interest rate.
Ensure you know exactly what you’ll be paying monthly and when, and how long their cooling off period is if you change your mind. Always take copies and keep them somewhere safe so you can check any details in future. Only sign this when you are completely satisfied and comfortable as you’ll be bound by financial regulations.
Instalment loans are widely available but you need to fulfil the basic criteria before applying. There are many lenders online but always look for the companies with a very good reputation, to get the best interest rates.
Ensure you can make the payments and always check the paperwork very thoroughly to avoid any expensive mistakes in the long run. Just make sure you really need the loan.