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 really 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.
If the experts are to be believed, it is rather wise to choose a short-term personal loan than borrowing from friends and family. You can easily get online installment loans in Texas from private lenders. And, repair your broken finances.
Now, you must be wondering what are these installment loans and how can they 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’re going to 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 needs to be repaid along with some interest on the principal amount.
Most of the loans, particularly the traditional loans, are only available to a select few in society. One of the criteria for availing of a traditional loan is 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. And since, most of these loans are usually available online, so the name online installment loan.
To put it simply, installment loans are unsecured short-term personal loans that are to be repaid in EMIs.
How can they help you?
As already mentioned, these loans are available to borrowers with no or bad credit history as well. However, saying that 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 why people opt for online installment loans is the ease of the application process. In fact, 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, you’ll be prompted 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, assessing your monthly income and expenses. Upon discretion, your loan is approved. And this complete process takes no more than 2-5 minutes.
That’s pretty fast, aye!
Higher Loan Availability
Another reason that many users quote is the better opportunities that are available online. Well, not every lender will offer you the same amount, or charge the same interest.
As a matter of fact, when you try to secure a loan conventionally, the chances are you’ll be applying through one lender only. This alone limits your chances for a loan and also the amount of loan.
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 the lenders the more you have term and loan value options. And, of course, you can go for a higher loan value if you need to. Well, obviously 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 no mention that all the formalities and procedures are taken care of online. And when you apply for the loan, the approval process is also completely digital.
Whereas, for a traditional banking loan, there is lots of paperwork. And it also affects our ecosystem.
So, by choosing an online installment loan, you can actually contribute towards the green revolution.
Are they really 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 you’ll be paying a higher interest. But at the same time, you also stand a better chance of managing your at-hand situation.
Borrowing money from friends and family, although comes with zero interest, needs to be repaid at one go. And if you need more money, then borrowing is simply out of the equation.
Similarly, when you borrow a loan from a traditional bank, there are lots of formalities and paperwork. 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 they cannot be compromised with. So, taking out a short-term installment loan makes for a perfect decision.
In fact, with installment loans, you not only can mend your personal finances but also 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 r improving your credit score.
To sum it up…
Online installment loans are just another form of short-term loans. But, somewhat better than quick cash loans or payday loans. Whether you need to pay for emergency medical services or get your car repaired, taking out an installment loan is perfect, if you’ve run out of options.