Installment loans are a type of loan that allows you to borrow a set amount of money and then repay it over a period of time in fixed payments. You can usually apply for an installment loan online or at a brick-and-mortar lender, and if you qualify, you can typically get the money you need within a few days.
To apply for an installment loan, you’ll typically need to provide some basic information about yourself and your finances, including your income, employment history, and debts. The lender will also pull your credit report to help assess your creditworthiness. If you’re approved for the loan, you’ll sign a contract that outlines the repayment terms, and then you can get the money you need.
If you’re thinking about taking out an installment loan, you might be wondering how the process works. Here’s a quick overview of what you can expect:
- Research your options– There are many different types of installment loans available, so it’s important to compare your options and find the best fit for your needs. You can use an online loan search engine like Credible to compare rates and terms from multiple lenders.
- Check your credit– Your credit score will play a big role in determining whether or not you’re approved for an installment loan, so it’s a good idea to check your credit report and score ahead of time. You can get a free copy of your credit report from each of the three major credit bureaus once per year at AnnualCreditReport.com.
- Calculate your affordability– Before you apply for an installment loan, it’s important to calculate how much you can afford to borrow. This includes not only the monthly payments but also the total cost of the loan (including interest and fees). Use our personal loan calculator to estimate your payments.
- Gather your documents– When you’re ready to apply, you’ll need to gather some basic documentation, including proof of income, identification, and your most recent bank statement.
- Apply online– Most installment loans can be applied for online in just a few minutes. Once you’ve submitted your application, you’ll typically receive a decision within a few days. There are also installment loans from direct lenders in Idaho that can be applied for in-person at a branch location.
- Review the terms– Once you’re approved, be sure to review the loan terms carefully before signing any documents. This is especially important with installment loans, as the terms are usually much longer than other types of loans (such as payday loans).
- Make your payments on time– As with any loan, it’s important to make your payments on time each month. Missing a payment can damage your credit score and also result in late fees. If you’re having trouble making your payments, contact your lender as soon as possible to discuss your options.
Applying for an installment loan is generally a quick and easy process. Just be sure to do your research ahead of time and compare rates from multiple lenders to find the best deal. And remember, always make your payments on time to avoid damaging your credit score.