Is there ever a good time for an unexpected emergency to drop into your lap? Maybe not. But there may be a moment in your life when you’re better prepared for its arrival. It may be easier to cover a surprise expense, health scare, or an unexpected repair if you have a well-stocked emergency fund and a lot of expendable cash.
But when your savings are tapped out and you’re working towards improving your credit, your finances may not be primed to take on extra expenses.
So what do you do?
Applying for quick installment loans may seem like an obvious solution, but it isn’t always the right fit for every financial emergency. They come with a list of pros and things you should be aware of, just like any financial product or service.
To help you with your research, we provide you with such a list so that you know when to apply for quick online installment loans.
Some Potential Benefits of Quick Installment Loans
If you’re strapped for cash and you run into an emergency expense, quick installment loans may be able to help.
We should note that when we say “quick,” we’re specifically talking about the application process. The time it takes for your loan to be funded, if you’re approved, can vary between lenders. For example, through MoneyKey, you may receive your funds in as soon as one business day, if approved. This may not be the case with every lender though.
Let’s take a look at some of the benefits of these loans.
1. Quick Installment Loans may be Available for Bad Credit
If your credit score isn’t the best, you may not be approved for credit from traditional lenders. And you wouldn’t be alone; over half of Americans are denied some kind of funding because of their credit score.
For a better chance at getting approved, check to see what you need for quick online installment loans. Some online lenders may consider your credit score while processing your application, but others may take some of the focus off this score.
Some online lenders also check other financial information when you apply. If your income and employment history show you have the cash flow to handle your repayments, you may be able to get a loan with bad credit.
2. You Apply on Your Own Terms
Applying for quick online installment loans can be convenient. Generally, all you need to do is go to a lender’s website to fill out the application.
You don’t need to arrange an appointment, have a face-to-face conversation, or even leave your home to do it. As long as you have a device capable of connecting to the Internet, you have a chance to apply.
Now imagine applying without a computer or smartphone. Once you take the Internet out of the equation, your borrowing experience gets catapulted back into the 20th century. You’ll have to make your way to a lender’s branch to speak with a loan specialist, and you’ll have to fill out documents by hand.
These aren’t inherently bad things on their own, but when you don’t have time in your busy schedule to make this meeting, it can be a major inconvenience.
3. It May Be Fast to Apply
Online installment loan lenders rely on technology, so they may push your application through the system faster. This tech makes it possible to review your request automatically and to perform real-time approval decisions in a matter of minutes.
This may be a fraction of the time it takes some in-person lenders to do the same thing.
The thing is, in-person lenders are generally slowed down by loan specialists who must review each document you signed by hand. And if they aren’t a direct lender, they may also have to involve another company before they decide to move forward.
In the states in which MoneyKey is an online direct lender, MoneyKey makes it easy to apply for quick installment loans. As an online direct lender, MoneyKey determines whether you are approved for a loan and is your primary contact at every step of your installment loan application process, which helps speed along your request.
In the state of Texas, MoneyKey is not the direct lender but operates as a Credit Access Business/ Credit Services Organization.
4. It’s Easy to Compare Your Options
When it comes to your finances, knowledge is power. Financial literacy helps you understand how money works at every step — whether you’re earning it, spending it, or borrowing it.
Part of being financially literate about your borrowing options is comparing the rates and terms of quick installment loans. This way, you know what’s available and what you qualify for.
Unlike in-person loans, you don’t need to go to a storefront to uncover your options. You may discover the options for quick online loans in your state simply by looking them up on a search engine.
If you find any loan companies that get your attention, check out their websites for information on their rates and terms. You can easily switch between the websites and do your comparison.
Some online direct lenders may also get attention from popular review websites. This comes in handy when you want a quick resource to research what other borrowers are saying about the company.
5. Fixed Payment Amounts
Quick installment loans come with a fixed term (or time) during which you’re expected to repay what you owe. You’ll generally make multiple payments over this period according to a predetermined schedule.
These payments (or installments) are generally fixed. This means they remain the same size throughout your term, so you will owe the same amount each time you pay.
Knowing that the payment amounts and the due dates are consistent may help you anticipate your installments easier. Your loan contract will outline your payment schedule in advance, so you may compare them to your budget at every due date.
Using a budget throughout the year is good money management habit, but it’s especially important if you’re borrowing money. A budget helps you plan your paycheck around your expenses, including quick installment loans.
Never tabled a budget before? No problem! Check out the MoneyKey Blog for budgeting tips and other money-saving advice while managing online installment loans.[ctaBox url="/rates-terms/" cta="Click here to apply for Installment Loans and Lines of Credit with same business day funding*."]
Things to Look Out for With Quick Online Installment Loans
While there may be some benefits to these types of loans, there are also some thing you’re going to want to keep an eye out for in order to make sure they’re right for you. Let’s take a look at some of those things.
1. You May Pay Higher Rates
Generally, a lender may check your credit score to do more than just see if you qualify. In some cases, they may also want to see your exact three-digit number to determine what sorts of rates and terms to set.
A borrower with an exemplary credit history and a high score may qualify for the greatest number of options at the lowest rates. Someone else with a lower credit score may have fewer options at higher rates. However, with some lenders your credit score won’t affect your rates, but will instead help to determine the loan amount you qualify for.
Keep this in mind if you’re searching for quick online installment loans for bad credit. You want to double check to see you can afford each installment (or repayment) on the due date.
To make sure to live within your means during your repayment term, check in with your budget. Cutting out any unnecessary spending may help you get a handle on your payments.
2. It Requires the Internet
With a name like an online installment loan, using the Internet to find, apply for, and repay these loans may seem like a given. And you’d be right.
That’s the alluring thing about assumptions. Sometimes, you’re right, and other times, you’re very wrong.
One wrong assumption that’s easy to make is believing that everyone has regular access to the web.
Unfortunately living without the Internet is a reality for some 10 percent of Americans. That’s nearly 33 million people — many of whom live in rural areas without reliable or affordable Internet — who aren’t online.
Then there are those who have patchy access to the web, like around a million Americans who still use dial-up connections. Trying to connect to the web like it’s 1993 may complicate getting quick online installment loans. All it takes is for one person to pick up the phone, and your connection is lost, mid- application.
What about going to an Internet café or library?
While these establishments may be a great way to play a game or check your email, it may not be the best way to log onto an online installment loans profile. You’ll be using a public computer with a shared network, which means you can’t guarantee your connection is secure.
3. You Need Some Level of Digital Literacy
Like financial literacy, digital literacy is a valuable skill to have in this day and age. It combines the physical know-how to scour the web with the critical thinking skills you need to judge the veracity of what you’re reading.
Basically, being digitally literate is like having a built-in detector. You may have a better chance at knowing what to look for so you can recognize a situation in which you may come across fake news, misleading advertising, or hidden fees.
But digital literacy is a lot like a muscle. If you don’t use it, you lose it. Or maybe you never had it in the first place. If you aren’t used to working out this part of your brain, you may find it difficult to spot potentially abusive or predatory lending practices.
To learn more about applying for online loans, take a look through our blog to learn more about this process.
4. You May Be Unfamiliar with the Lender
If you’re going online for quick installment loans, chances are you’ve decided not to borrow from the financial institution you have a checking account with for a reason.
Maybe they require you to have prime credit or maybe their rates are too high. Whatever it is that pushes you to the web, now you’re starting from scratch.
This may be daunting. A quick online search may generate millions of results in under a single second. While not all of them may be relevant, you’ll still have to sift through some of them.
There are a lot of online direct lenders out there, and you won’t be able to rely on your past experience like you would with the financial institution you hold an account with. To make sure you make an informed decision, you’ll need to devote some time to compare online lenders and their products — and this may take time.
5. You Must Re-Apply if You Need More Funds
Quick online installment loans are examples of close-ended loans. Let’s break down what this means into four major points:
- You borrow a predetermined amount of money upfront.
- You’re expected to pay it (and any applicable interest and/or fees) back over a pre-set time.
- Once you pay it back, your loan account closes.
- If you need more money later on, you can’t rely on the same installment loan. You’ll have to reapply and wait to hear if you qualify again.
This may be a disadvantage if you need help covering an unexpected emergency that may increase in costs.
Let’s look at an auto repair as an example.
Your tire sensor is on permanently ever since you took off your winter tires. Your mechanic may give you a quote to fix it and to perform a front-end alignment.
If you don’t have savings, you may need an installment loan to pay the first invoice. But after a week or two back of being back on the road, you notice there’s still something wrong with your tires. If you take it back, you may have to pay another bill at a separate cost.
If you need a second installment loan to cover additional auto repairs, you will have to go through the process of applying all over again.
Weigh Your Options
Installment loans come with a list of pros and things that you should look out for. It’s important to weigh those and see if they’re the right fit for your financial needs.
Despite their name, applying for quick online installment loans doesn’t require a split-second decision. Here at MoneyKey, we recommend you take all the time you need to properly review installment loans from all sides.
If you have any questions about what you learnt today about quick installment loans, get in touch with our Customer Care team. We’re always happy to help!