iQuanti: Online installment loans can help you cover unexpected financial emergencies, make major purchases, or pay off bills and credit card debt. They come in many forms and are available to many consumers, regardless of credit score. The terms and conditions vary, so it’s important to read them carefully before taking out an installment loan. Read on to learn how borrowers can get an online installment loan in 2023.
How online installment loans work
Online installment loans are popular for their simplicity. With these short-term, unsecured loans, the lender agrees to lend the borrower a specific amount of money with a fixed interest rate. The borrower then pays the lender back in equal monthly installment payments for a specified term, typically anywhere from several months to a few years. This system makes installment loan repayments easier to budget.
How can borrowers get an online installment loan?
It’s easy for borrowers to get an online installment loan. Here’s what you’ll need to do to get started:
1. Check your credit score
Lenders will check your credit score when you submit your application. You should do the same before you get to that point. Knowing what your credit score is can help you decide where to apply. If you have a poor or fair score, you may want to look for poor-credit lenders. Higher scores can provide you with more options.
2. Compare lenders and loan options
Not all installment lenders are created equal. Spend some time researching lenders and the loans they offer online, and don’t just jump on the first lending option made available to you. Every online lender has different terms and conditions. Some charge origination fees, others offer lower interest rates, and there are a few that charge a fee for early repayment. Make sure you find an installment loan that works for your budget and needs.
3. Gather all necessary loan documents
The documents you’ll need for an installment loan application may include your state ID or driver’s license, proof of an active checking account, and proof of employment (W2 or 1099). Some lenders also require recent paystubs. Make digital copies of these documents if you’re applying for an installment loan online.
4. Apply for an installment loan online
Fill out your application for an installment loan on the lender’s website. Provide all details required, and make sure all the information you filled out is accurate. Then, submit your application and wait for approval.
5. Receive your funds
Many lenders offer instant or quick loan approval decisions, so you may find out immediately whether you’re approved for an online installment loan. Once you’re approved, the lender will send you a loan agreement. If everything is in order, sign the agreement. With online lenders, this is typically done with a digital signature. The funds are typically transferred to your checking account shortly after that, as quickly as the same day you apply.