Facing unexpected financial troubles and don’t know what to do? Maybe availing an installment loan could help you overcome your troubles. Previously, only credit unions and banks used to offer installment loans, which often required you to satisfy numerous eligibility conditions before you were approved for a loan.
However, there are multiple online installment loan agencies like Personal Money Network available today who can provide you loans with greater flexibility. They work with multiple lenders to provide you with loans that have favorable terms for their customers. Let’s take a detailed look at online installment loans and see what they are all about.
What is an Online Installment Loan?
Installment loans should not be confused with payday loans, cash advances, or even credit cards. An installment loan allows you to borrow specific amounts under an agreement, which requires you to pay it back along with applicable interest within a certain time period. The payment schedule is defined clearly and has to be paid on a weekly or monthly basis.
There are 2 primary advantages of using installment loans. Firstly, you will be able to pay off your loans over a period of time, thus making your payments a far more affordable affair compared to other options. Taking out loans that have a very short duration can be incredibly stressful since you will spend most of your time putting out one fire after another. But installment loans provide you with sufficient leeway to come up with a plan to clear your loans.
Secondly, all applicable terms and conditions of installment loans are provided upfront. You don’t need to be worried about hidden clauses any more. Every piece of detail including your scheduled periodic payments, interest rates, and payback period will be provided to you before you agree to the loan.
Online Installment Loans Don’t Have Stringent Policies
Gone are the days when you had to have an excellent credit score to avail any kind of loan. These days, you can apply for installment loans if you can satisfy just a few requirements. They include:
- Should be a US resident
- Should be aged at least 18
- Should have a valid phone number and email address.
- Should possess a bank account
- Should have a verifiable source of income
How to Apply for An Installment Loan
Thankfully, it is extremely easy to apply for an online installment loan. All you need to do is submit an online application and prove to them that you satisfy all minimum requirements. You can also avail online installment loans from Personal Money Network, a service that provides you information about installment loans from leading lenders and connects you with them. The lending agency will need to verify this data. If everything is found in order and you agree to the terms and conditions, your loan application will be approved and your funds will be deposited into the bank account as early as the very next day.
Repaying Your Online Installment Loans
After you’ve obtained an installment loan, it is extremely important that you make regular payments to clear your outstanding interest and principal amount. As a matter of fact, never borrow a penny over what you really need. Ensure that you’re fully capable of paying the installments after evaluating your budget. Once you’ve completed paying off an installment loan, it’s okay to go for another one, as long as there is a legitimate need for it.
You can always ease your cash flow by applying for an online installment loan, in case you’re with some unexpected expenses or other purchases. Since these loans usually do not have any stringent requirements, this form of loan might be best suited for your needs, especially if you would like to pay the loan back over a period of time.
What If You Don’t Pay the Loan?
If you fall behind on paying your loan, the lender will make an effort to contact you at first. This conversation is usually done via phone where you can talk with your lender and find a different payment arrangement, which you are able to accommodate. Lenders are usually understanding of your situation and can relax your terms if they see you’ve made a legitimate effort to pay the loan and have a reliable source of income. However, if these attempts don’t bear any fruit, third party collection agencies may be brought in to collect this debt. If you ever run into difficulties in paying off your loans, we recommend you contact the lender directly before it becomes a delinquent one.
Please note that an online installment loan should only be utilized for meeting short-term expenditure. It should not be considered equivalent to a long-term solution. Please research a comprehensive financial solution if your problems are much bigger. Remember that online installment loans are only temporary, emergency measures and shouldn’t be your go to move everywhere. Finally, always go for services like Personal Money Network to avail favorable interest rates and repayment schedules.
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