Going for a loan seems to be fair enough when you have a massive expense to deal with. Whether it is to finance your university fees, home, car or even your much-awaited vacation, getting a large amount of money at once and repaying them in chunks later can really work. Well, when it comes to loans, the lenders in various forms provide them, but the most preferred one is the installment loan.
As the name says, in this category of loan, the users receive the entire money all at once and later get to repay the debt in monthly installments along with the interest. Generally, there are two ways to get installment loans. One is where you have to provide collateral in order to secure the loan. This collateral or asset could be any of your valuable property such as your car, house or any expensive jewelry. On the other hand, for the second type, you don’t have to stake any of your collateral. You will have to completely rely on the strength of your credit score in order to get the approval of the loan.
If you do not have an attractive credit score, then the chances of getting approval from banks are very odd. It is why going for installment loans for bad credit from direct lenders could be a better option to go for.
Reasons why you should go for installment loans
Now, as you have well understood about this loan, it’s time to see the reasons why you should consider it.
- Liberty to get large or small amount both
- Fixed monthly payment
- Easy to get approval
- Simple procedure
- Freedom of spending
Let us start the discussion now…
Liberty to get large or small amount both:
One of the biggest reasons to choose installment loan is that you can apply for large and small amount both as per your requirement. Well, this is not something that you get to choose in other types of loans. Whether you just want money to repair your bills, or need to finance your house, installment loans seem to be just an ideal choice.
Fixed monthly payment:
Another good thing about this loan is that the interest that you will have to pay will be fixed and regular. Therefore, you can easily plan your budget and be prepared for the repayments from the very beginning. Generally, the term of the repayment is quite long, so you do not have to worry about paying the debt immediately. Also, you can go for very bad credit with no guarantor from direct lender only. Basically, this is a type of installment loan where you get the liberty to complete the repayment within a year.
Easy to get approval:
It is important for you to know that most of the banks reject the application if the borrower has a bad credit score. This is where installment loans can be extremely beneficial to you. There are many lenders in the market, who can give you a loan even if you have a poor credit score. There are two modes to get the loan, one is via online and another is through the person directly. Therefore, you can go with any one of them that suits you the most.
If you are planning to go to the street banks in order to get a loan, then do not think it will be just one trip work. You will have to undergo various back breaking procedures where the banks will verify each and every personal information strictly. Well, this is not something that you are going to get in installment loans. Generally, installment loans are approved with minimum paperwork and documentation.
Freedom of spending: Another great reason of going for installment loans is that unlike other loans where you have to stick with the property for which you have applied, you have the freedom to spend the money of the installment loan as per your need. The only thing that you have to keep in mind is the timely repayment.
Wrapping up, there is no denying the fact that very bad credit with no guarantor from a direct lender is a great way to fulfill your financial need. However, before you apply for the loan, make sure that you have well understood about it and clarified everything with the lender regarding the loan.