In dire need of money, people often stumble upon some unusual financial solutions. For example, when nothing seems to work out, students often ask their friends or family to lend some money.
Well, of course, there are plenty of ways out of any emergency cash need. But the real question is- do they all solve the problem? Or rather, do they further complicate the matter?
According to some financial experts, borrowing from friends and family may get you out of the cash crunch. But at the same time, it tarnishes your image before the lenders. And it’s pretty common these days.
According to experts, choosing a short-term personal loan rather than borrowing from friends and family is wise. You can easily get online installment loans in Texas from private lenders. And repair your broken finances.
Now, you must be wondering what these installment loans are and how they can help you. And, of course, you’d also want to know how they are better than borrowing from friends and family.
Sit tight and keep reading because we will answer these questions for you in this article.
What Are Online Installment Loans?
Regardless of whether you’re a student or a corporate professional, you already know what a loan means.
It essentially is a form of debt that must be repaid along with some interest on the principal amount.
Most loans, particularly traditional ones, are only available to a select few. One of the criteria for a traditional loan is a credit score or history.
But, according to a report, nearly 53% of Americans were denied a loan due to bad credit scores. It means they cannot apply for a conventional car or home loan.
Nonetheless, private lenders offer a unique solution to cash troubles for people with bad credit- installment loans. Since most of these loans are usually available online, people know them as online installment loans.
To put it simply, installment loans are unsecured short-term personal loans to be repaid in EMIs.
How can they Help You?
As mentioned, these loans are also available to borrowers with no or bad credit history. However, saying there are no credit checks at all would be misleading.
Regardless, there are plenty of benefits that online installment loans have to offer. Here’s a list of some:
Quick Loan Approval
The first and the most popular reason people opt for online installment loans is the ease of the application process. The process is so simple that you can expect your loan to be approved within flickering moments.
To better understand how this happens, let us take an example.
Suppose you visit an online money lending network. And you fill in some basic details.
Upon basic profile checks, the lender will ask you to choose from the available options of loans that various lenders can offer you.
As soon as you submit your loan application with a lender, an automated intelligence system skims through your finances. Precisely assess your monthly income and expenses. Upon discretion, the lender approves your loan. This complete process takes 2-5 minutes maximum.
That’s pretty fast, aye!
Higher Loan Availability
Another reason that many users quote is the better opportunities that are available online. Not every lender will offer you the same amount or charge the same interest.
When you try to secure a loan conventionally, the chances are you’ll be applying through one lender only.
This limits your chances for a loan and the loan amount.
Whereas, when you apply online for an installment loan, especially through a money lending network, you have more options.
To put this into perspective, the more lenders you have, the more term and loan value options you have.
And, of course, you can go for a higher loan value if you need to. Well, that would also depend on your profile and lenders’ discretion.
No Paperwork Involved
One more cool feature about these online loaning systems is they are paperless.
Well, it needs to be mentioned that the lender takes care of all the formalities and procedures. The approval process is also completely digital When you apply for a loan.
Meanwhile, for a traditional banking loan, there is an involvement of a lot of paperwork. And it also affects our ecosystem.
So, by choosing an online installment loan, you can contribute to the green revolution.
Are they Better than Other Options? Why?
Now, coming to the most significant question of all: are these online installment loans really worth it?
Well, to put it straight- yes, they are.
Of course, taking out a loan from a private lender would mean paying higher interest. But at the same time, you also stand a better chance of managing your at-hand situation.
Although it comes with zero interest, borrowing money from friends and family needs to be repaid in one go. If you need more money, borrowing is simply out of the equation.
Similarly, when you take out a loan from a traditional bank, many formalities and paperwork are involved. Particularly, when you need money for emergency expenses, let’s say to pay a medical bill, you cannot wait long.
In all these scenarios, time and amount are of the utmost importance. And one cannot compromise with it. So, taking out a short-term installment loan makes for a perfect decision.
In fact, with installment loans, you can mend your finances and manage your debts easily.
After all, the payments are to be made in installments, as already mentioned. So, there’s no debt burden that you need to tackle, all the while also improving your credit score.
To Sum it Up…
Online installment loans are just another form of short-term loans. But it is better than quick cash loans or payday loans. Whether you need to pay for emergency medical services or repair your car, taking out an installment loan is perfect if you’ve run out of options.
Read Also:
