Installment loans are some of the easiest types of loans to get. In a struggling economy, many people are finding the need to obtain a loan to pay their bills or deal with an unexpected financial emergency. Here are the basics on how installment loans work.
No Credit Check Required
In most cases, installment loans are not contingent upon a credit check. This is one of the things that make them such a widely used type of loan. Since this loan requires no credit check it prevents peoples credit scores from dropping simply because they needed to obtain a loan for any reason. Using installment loans makes it easier for people to borrow money multiple times. In the event that an installment loan does require a credit check, the person applying for the loan must authorize that credit check.
They Are Unsecured Loans
Since an installment loan is a type of unsecured loan, people have no need to give something as collateral in order to obtain the loan. Reading the fine print is the best way for a person to reassure themselves that the installment loan they are applying for is unsecured.
They Can Be Obtained Quickly
It is much quicker to obtain an installment loan than any other type of loan. In most case, people who are approved for this type of loan are given the cash on the same day, many within mere hours. The catch is that an installment loan generally tops out at $1,500 so if a person needs more than that they must apply for a different type of loan.
Bankrupt People Can Apply For One
An installment loan can be obtained by someone even if they have filed for bankruptcy. Credit lenders for this type of loan often don’t even check to see if the person applying has ever filed for bankruptcy because that information is not used in determining whether or not the person qualifies for an installment loan.
Many people use installment loans to pay for an unexpected expense, such as paying off a ticket, a fine or even their regular monthly bills. Though it is not recommended, some people even use installment loans to pay for something such as a vacation. Installment loans are also often acquired when someone has a medical emergency that forces them to come up with extra cash at the last possible minute.