An installment loan is typically a longer-term loan than a payday loan. Installment loans are generally a lump sum that is paid back over time in set installments. Common types of installment loans include car loans and home mortgages. With the rise of online technology, installment loans online have become more common, which is good news for potential borrowers looking for more convenient options.
Different factors, like credit score and loan amount, can affect the terms of an installment loan. Depending on the lender, they may have certain qualifications and criteria they are looking for in potential borrowers.
It may be difficult for borrowers who have bad credit to get a loan from a traditional financial institution like a bank. This is one of the reasons why online lenders are increasingly popular. Although online lenders may still need a potential borrower to possess a bank account, these online lenders might have fewer requirements than some banks.
Still, even though there are installment loan lenders who may be willing to work with bad credit borrowers, you should know that it is virtually impossible to get a loan with no credit check.
Requesting an Installment Loan
Because of the rise of online lending, it is now easier than ever to start the loan request process with a simple online form. It’s important to keep in mind that while we are not a lender, we do work with a number of lenders in our lender network. Many of these lenders may offer installment loans, so if you think an installment loan is an option for you, feel free to fill out our form to get started, at no cost.
There is a lot of information to consider when thinking about requesting a loan, but even if it seems overwhelming, requesting a loan online is more convenient than doing it at a bank in many cases. In the past, you would need to wait in line at the bank and be present during their operating business hours. But thanks to the availability of online loan request forms like ours, you can get the process started right from your computer or smartphone at a time that is convenient for you.
Online installment loan lenders might have other qualifications they want to look at, such as:
Social Security number
A lender may want to see a potential borrower’s Social Security number because it can help them further evaluate the borrower. Lenders want to make sure potential borrowers fit their qualifications before offering a loan, and a Social Security number can help them verify the information.
Proof of residency
Certain states may have different rules regarding online loans, and this is one of the reasons why some lenders may request proof of residency from potential borrowers. Plus, it serves the goal of learning as much as possible about potential borrowers, as lenders want as full a picture as they can get of someone before they decide to lend them money.
Proof of income
For lenders considering whether or not to lend money to a potential borrower, the main factor they are trying to determine is a risk. Lenders are less likely to give money to a borrower if they think that person might be a high risk of not paying back the loan. Proof of income is one of the ways lenders determine whether or not a potential borrower has the means and ability to pay back a loan they may be requesting. Borrowers may not need a particularly large income, but they often will need to show some proof that money is coming in regularly. This can help offset the risk for lenders.
Some lenders may need identification to verify some of the information presented by a potential borrower. This may be a photo ID like a driver’s license or state ID or even a passport or birth certificate. Different lenders may have different identification requirements, so make sure to check this.
In many cases, if a borrower does end up receiving approval from a lender, the lender will deposit the cash into the borrower’s checking account. This is why some lenders ask to see proof of a maintained checking account when analyzing potential borrowers.
Keep in mind, for lenders, every loan given represents some level of risk. By asking for these materials, lenders are trying to mitigate their risk by making sure borrowers are reputable. Don’t be discouraged if it seems daunting. There are many lenders out there who are willing to work with borrowers in different financial situations, including those with bad credit.