Where can you go when you need a few hundred bucks as quickly as possible? Your friends? Your family? In that entire group, there will probably only be a very few people, if any at all, who will be able to hand you that kind of money right now. Also, you can try to get a small, short-term loan from your bank. Good luck with that. Aside from you spending an hour filling out the application and them doing all of the checks that they will do, it will take forever and probably be denied because banks don’t make a ton of money making loans of that type.

Where does that leave you?

Installment Loans

You might want to consider an installment loan. Some alternative lenders provide personal cash loans as well as what are known as installment loans in amounts that can go up to $1,250 as an alternative to payday lending. Some of the key benefits include things like minimal requirements for eligibility, funding that is quick and a repayment schedule that is flexible. To qualify, applicants need to possess a valid social security number, an active checking account, and a verifiable source of income. Check out the information on BlueTrustLoans.com to help decide whether this is right for you.

Why This Might be a Good Fit

Not everyone needs a lot of money at once and, as already discussed, banks don’t like to approve small loans. You could go get a payday loan, but those will nearly break you with the fees and payment requirements. Alternatives to payday loans, such as this type, will offer you repayment terms that are more flexible and lower interest rates.

This type of loan is ideal for anyone who might have missed a week at work due to illness and needs the cash to make ends meet. It might also be ideal for someone who just graduated from college and is moving to a new city. Did your car break down? Do you not have the funds to get it fixed? This type of loan can be the ideal solution to any of those problems and more.

Benefits

There are quite a few benefits to getting this type of loan. One of the main benefits is that they are predictable. Each payment will always be the same amount, with no hidden surprises. They also don’t require any sort of collateral. This means that installment loans such as these are easy to get right when you need them. They also don’t have a ton of requirements for someone to be able to get one.

The Ideal Solution

If you are thinking that this might be the ideal solution for your financial troubles, you might be right. How do you know for sure, though? The first thing that you should do is to analyze your specific financial situation. Installment loans are meant to be a type of solution that is both short term and occasional. They should never be looked at as a source of funding that is ongoing. If you happen to be in need of more help than what you can get from this type of loan, you probably need to think about getting an appointment with a credit counselor.

It is imperative that you only borrow as much as you can afford to repay in a timely manner. If you can manage to repay it completely with the next paycheck you get, this would be ideal, but not necessary.  When installment loans are used responsibly and as they were meant to be used, they can be an ideal alternative to such things as credit scores that can be damaged, credit card debt, and paying late fees.

Timeliness

You will come to find that from the time you start your application for an installment loan until the funds you need are in your possession, it isn’t a lengthy amount of time. If you happen to make your application within the business hours, most installment loan companies will call you within only a matter of minutes. After everything has been approved, you will more than likely have the money right in your account the next business day.

Repayment

It is important to remember that this is a loan and as such, it will need to be repaid. Each of your payments will be due on a schedule. Typically, this schedule will correspond with the days you get paid. Most of the time, you will have about 6 months to pay the loan in full. That being said, you are more than welcome to pay it off as soon as you can before that date without incurring any sort of penalties.

Categories: Credit