You don’t have to go to a store location to get an installment loan. Thanks to online lenders, you can take out an installment loan without leaving your home. Still, there are a few steps to follow to ensure you’re getting great rates and terms. Below, we’ll dive into how online installment loans work and how to find one that fits your financial situation.
How do installment loans work?
Installment loans are short-term loans that can give you a lump sum of money upfront. After you get the loan, you’ll begin paying it back in fixed monthly payments of principal and interest. This predictableness makes it easy to plan how you’ll fit the payments into your budget.
Installment loans are used for a wide variety of purposes, thanks to their budget-friendliness. Some uses include emergency funds, home improvements, large purchases, and car repair or medical bills.
How to get an installment loan
Here’s how you can get an online installment loan today:
1. Shop around
You should start by shopping around and looking at multiple online lenders. Each lender may offer different rates and terms, so spending some time comparing will help you get the right loan for your situation.
2. Get prequalified
Prequalification lets you judge what kinds of loan terms you could get from each lender before applying and undergoing a hard inquiry. That way, you can avoid credit damage while you compare each offer.
Sometimes, online lenders send you prequalification offers through the mail. It’ll have a code you can use to redeem that offer when you apply. Otherwise, many lenders have prequalification tools on their websites. To get prequalified, you’ll provide some basic personal and financial information and then undergo a soft inquiry, which won’t harm your credit.
After comparing your prequalified offers, you can apply for the one with loan terms that work for your budget and needs. When filling out an application, you may have to provide documentation verifying your income, assets, and other financial information. The application itself will likely only take a few minutes to fill out. Once you submit an application, the lender may get back to you with a decision within a few minutes.
4. Sign the papers and get funded
If approved, the lender will provide you with online loan documents outlining the loan terms. If you agree to all the terms, you can sign the documents electronically. Then, the lender will deposit the money into your bank account. Many online lenders will give you the funds the same day you apply or within 24 hours.
Get an installment loan online
Installment loans can be great financial tools, and these days, you can get them from the comfort of your home. They offer predictable monthly payments and are especially useful for large purchases or establishing an emergency fund quickly. But it’s still smart to do your research, shop around, and get prequalified first. This will help you avoid damage to your credit score and find the right online installment loan for your situation.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.