When you need a large sum of money to fund an emergency or to steadily finance personal or household needs, you need more than just a payday loan to cover your expenses. Luckily, there are installment loans offered even if you have bad credit—and you can apply for these online.
Unlike traditional loans, offered by banks and credit unions, online installment loans will not require you to make a personal appearance or speak to a loan officer face to face. All you need to do is submit your requirements online and, if the company finds these sufficient, your money will be released either on the same day or the next day. While its interest rates are much higher than the usual lending agencies’ fees, many people find these to be a practical and convenient option. This is why despite criticism about its practices, it remains to be a thriving and successful industry.
Benefits of Online Installment Loans
Installment loans normally go as high as $5,000, depending on the company and your location. Payday loans usually approve only less than $1,000 and are payable as a lump sum on your next payday. Installment loans let you borrow a larger amount and then pay it back in increments over an extended period. These loans normally offer 6 months to one year for repayment, but if you establish good credit with the company, your next loan if you renew could run up to 24 months.
Another advantage is that it gives you more flexibility when it comes to repayment. GAD Capital installment loans bad credit and similar lending agencies allow borrowers to choose among several payment terms to ensure that payments are met on time. There’s no pressure to pay on this exact date right away. Upon approval or your loan, you will be informed of the loanable amount and then asked whether you would like to pay in 6, 12, 18, or 24 month terms. The interest rate will be locked throughout the entire duration of this term.
Getting A Loan Even With Bad Credit
Most online lenders base your approved loan amount on your capacity to pay now. That means they will not bother with your credit history. Even with bad credit, you have the chance to take out an installment loan, as long as you can prove you can pay it back. This is why your proof of income is important. You can also use these loans to fix your credit history and get you out of the red zone—so that you can apply for a traditional loan, which has lower interest rates, in the future.