How do Installment Loans work?

Good afternoon, first you need to understand what the installment loan is.

"Installment loan" is a term that refers to the vast majority of both personal and commercial loans provided by lenders. Installment loans include any loan that is repaid with regular scheduled payments or installments. Each installment payment includes repayment of part of the principal amount of the loan, as well as payment of interest on the debt. In many cases, installment payments are fixed and they do not change from month to month.

How do Installment Loans work?

Getting an installment loan is not a complicated process. If the borrower applies for an installment loan, he must fill out an application with the lender, usually indicating the purpose of the loan, such as house repairs or something else. The lender discusses different options with the borrower, usually down payment, loan term, payment schedule and payment amounts.

The installment loan process is:

1) Check if you are eligible for an installment loan. The requirements are:

• Proof of income: when it comes to income requirements, that doesn't mean you must have a big business or a nine-to-five job. But you need to provide a form of income such as part-time, disability income or even social security.
• Federal-issued ID: lenders will always ask for your ID to establish your age. To be eligible for a loan, you must be over 18 years old.
• FICO credit score.
• Have a Bank account.

2) Applying for a Loan: You can apply for an Installment loan online, visiting the local branch with direct lenders, or on the phone, or using a mobile app.

Online installment loans are convenient because they are faster and easier to get than in person in a traditional Bank or credit Union. There are a lot of direct lenders providing online installment loans. You should only apply and get the funds you need.

However, what can I do if I have a bad credit score?

If you have bad credit and it is a problem to get a Bank loan, there’re many loan providers which specialize in installment loans for people with bad credit. For most lenders, what matters is your ability to repay, not your traditional credit rating.

Read more: Bad Credit Installment Loans.

Thus, following these easy rules you'll easily find, apply and get approved for an installment loan of the necessary amount.