Installment loans are the loan alternatives for those who don’t have a checking account. It is intended for people who do not have a credit history, and when they apply for the loan they are required to pay a monthly amount that is secured against their property until the time the loan is paid off.
Credit check will not affect the approval of the loan
When applying for the loan, you need to make sure that your credit check will not affect the approval of the loan. This loan is a short-term one and it does not require a credit check. However, you can still be approved if you show that you can make the monthly payments.
The advantage of this loan is that it is also referred to as a payday loan. It is a short-term loan and so in the event that you have a problem with money when it comes, the loan company will be ready to provide you with the loan, and all you need to do is make the payment on time. If you miss the payment on time, then the bank can sue you and if the court finds you guilty of failure to pay, then you may lose your home.
For those who are having a problem paying their bills, and are not able to make the payment, the loan company is willing to extend the term and provide you a little more time, but the worst thing you can do is to continue to delay the payment of the installments. If you are able to make the payment on time, then it is a better option because there will be no risk for the bank and your home may not be at stake.
Application form and a copy of the bank statement
One of the advantages of installment loans is that the person who is applying for the loan does not have to provide collateral. The only thing that the bank needs from you is your proof of income and your address.
When you apply for the loan, you will have to make an application that will show that you have sufficient cash to make the payment. Your application form will have to include a few details about your personal profile and the amount of the loan.
When the approval of the loan is determined, you will be given a receipt with a copy of the application form and a copy of the bank statement. You will be asked to sign the receipt so that the bank can get back their money.
Make the monthly payment on time
After you sign the receipt, you will be given a check for the amount that you borrowed and will have to return the check in the same manner. You will be responsible for paying the interest that is charged on the loan, and so, it is better to spend a little more than the interest.
Make sure that you make the monthly payment on time. If you are having financial problems and you cannot pay your installments on time, then it is better that you consider other options like a home equity loan.
If you have bad credit and you want to improve your credit score, it is better that you take advantage of a home equity loan. It is better to borrow a small amount to repair your credit score before you make the payment.
Pay off your other loans with the use of the equity
With a home equity loan, you can consolidate your loans and make the payments that you have been missing. You can pay off your other loans with the use of the equity from the equity loan and can keep the loan payments small.
Installment loans are useful to those who are having trouble paying their bills, and who do not have a credit card or a savings account. But, you need to ensure that you only make the payments on time so that you can avoid the risk for the bank.