Installment Loan Overview
If you need quick cash, but require more time to pay back the money you borrow than a payday loan offers, than an installment loan might work for you. Rather than being paid back in one lump sum on your next pay day (like a traditional payday loan), installment loans are paid back in scheduled installment payments that typically coincide with your pay days. Even though installment loans have a longer term than payday loans, they are still a method of short-term credit and are not intended to be used as a long-term financial solution.
Requirements to Apply for an Installment Loan
Most lenders have the same basic requirements to apply for an installment loan. Some lenders may also require minimum time at your current job or a minimum amount of income to qualify. When applying for an installment loan, most lenders will require the following:
How to Apply for an Installment Loan
There are a couple of different ways to apply for an installment loan including online, in a store or over the phone. Some of the steps vary depending on how you apply and the lender you apply with, but they all have the same basic process.
Repay Over Time
The need for cash can come up at any time, so many lenders offer an application process for online installment loans. With online applications, you can apply from your smart phone, computer or tablet any time of day or night without having to work around business hours. The process for getting an installment loan online is very similar to the loan by phone process, the only difference is you are filling out your application directly online instead of over the phone with a customer service representative.
Your loan funds can be direct deposited to your checking account, and periodic loan payments will be scheduled around your pay days. Most lenders offer an AutoPay option where your payments can be automatically processed on your due date without having to take any action.
Apply at a Store
If you prefer to speak with a loan expert in person, you can apply at a physical store. The process typically entails filling out a paper application with your personal and income information. You will fill out a paper application, provide your method of payment for your installment payments, and get your cash on the spot (some lenders will provide a money order rather than cash).
Apply Over the Phone
Many online lenders have a loan by phone service where a customer service representative will ask you to provide your information over the phone and they will enter it into an application for you. Have the following information handy to complete the application: personal information including your Social Security Number and an identification number, income information including your net and gross pay and employment information, banking information including your checking account and routing numbers (this will be used to get your money to you, and also may be used to process your payment).
Once your application is complete, they will provide you with a lending decision over the phone. Upon approval, you will most likely have to go online to sign your loan documents. Once you have agreed to the loan terms by signing your documents, your loan funds can be direct deposited to the checking account that you provided during the application process. Just like with online installment loans, most lenders will give you the option to enroll in AutoPay during your application process. If you agree to AutoPay, then your payment will be automatically processed (using either your checking account information, or debit card information) when your payments are due.