Dos and Don’ts when opting for installment loans
Money is something that makes everyone’s life easier to lead. The more you have the greedier you get to earn more. But, what about those people who are fighting to make ends meet?
It is not such a happy life after for them, isn’t it? Paying for medical bills, utility bills, car repairs and so many things suck the happiness out of their life and sometimes the situations do not help either. You find yourself having to borrow money from your friends or relatives since you can’t take a loan from the bank because the last time you did that, you couldn’t repay the money and they put you down for bad credit.
From that day onwards you thought that your chances of getting a fresh loan approval are gone. That is definitely not the case. Installment loans are for those who are looking for quick cash, but unable to get them because of their poor credit history. Payday loans come with flexible repayment terms and do not involve any credit checks. But, before jumping into any conclusion about these types of loans, it is important to know a few things about them before actually requesting for the loan.
Things to do when opting for installment loans
Considering the fact that you know about online installment loans, here are few things that you should do initially to make sure that your loan request moves smoothly:
- Be prepared to share your bank details with the lender. There are no cash transactions or payment through credit card. After one business day, the amount you requested for will be transferred directly to your bank account. Do not worry, your bank details will be safeguarded by the lender and will not be compromised in any way.
- Always have a repayment structure ready while filling out the loan application. Yes, you can always opt for the monthly repayment option, but just in case you have doubts about that, take some time to think of a way that would convince the lender that you will pay the money back on time. Installment loans come with interest rates. So, plan your repayment accordingly.
- If you have decided on a spree to ask the customer support regarding your query. Only give a heads up if you are sure about the terms of the lender.
Things not to do when opting for installment loans
As exciting as it may sound that you are eligible for installment loans even with a bad credit score, it is important not to get swayed by that joy. There are numerous mistakes that loan requestors commit that leads to disapproval of their loan. Following are some of the things that you ought not to do when requesting for installment loans for bad credit:
- Do not fall prey to online lenders who ask for collateral against the loan they provide. Always remember that payday loan terms do not require any kind of collateral. Just like there are genuine installment loan providers on the web, there are frauds too waiting for you to slip up and commit a mistake.
- You will have to fill out an application form initially where you have to mention few basic details like name, occupation, address and many such details. Do not ever lie on that application. If you have to reapply for another loan later and details don’t match, you may not get the loan after all.
- Do not expect the loan request to be accepted immediately. It takes at least a business day to check your application and go through the state law. Since there are hundreds of loan requestors with various loan amounts, there is no guarantee that your application will be sanctioned within a day. There are times when you may have to wait for a couple of days to get the money transferred to your account.
- Last, but not the least, do not fail to pay the money back on time. The longer you delay the more interest you have to pay back. It is possible to get an extension on the repayment period, but that may lead to a negative mindset on the lender. If you come back any time soon to apply for another loan, the ball will be on the lender’s court. That is why it is crucial that you figure out a way to repay the loan first before applying for the loan.
There are various options to request for money, but installment loans for bad credit give you that window of opportunity to repay the loan over time. Different financial institutions have different rules and regulations to sanction a loan. Additionally, your credit score will be checked. To avoid all that harassment, it is wise to opt for installment loans. However, you need to budget well in advance. Repaying the loan will not only do the lender a world of good, but you will have the goodwill of being a responsible loan requestor. So, the bottom line is, if you are in need of quick money, installment loans will be best provided you have an escape route planned to repay the loan.