Installment Loans from Direct Lenders
If you want installment loans from direct lenders then look no further. We have over a hundred direct lenders standing by to process your installment loan application. Know immediately if you have been approved. Money can be sent direct deposit to your bank account.
What is a Direct Installment Loan?
A direct installment loan is a type of short term financing repaid in monthly payments or periodic installments including an interest and principal. The loans are sent direct deposit to your bank account, usually by the next business day.
Sometimes, the term installment debt or installment credit is used to refer to an installment loan. Normally, an installment loan is given to a borrower; the loan features a fixed number of equal amounts of monthly payments over several months or years.
Why Choose an Installment Loan
Installment loans can benefit individuals and businesses that don’t have sufficient cash to purchase a service or a big-ticket item. Installment loans from direct lenders are an easier way of paying for building, cars, houses, periodic installments, and even college tuition.
The structure of installment loans assures that the lender that the loan will be repaid. After taking an installment loan, the interest obligation of the borrower accrues with time at a specified rate. When left unpaid, the interest rate accumulates, and the borrower will have to pay a higher total amount for the applied loan.
Loan Terms and Conditions
The term of an installment loan may be as little as a few months and may last as long as 30 years. An example of an installment loan is a mortgage. These specific loans are most fully associated with other traditional consumer loans that originate and locally and paid back over time by consistent payments of interest and principal.
A Safer Alternative To Payday Loans
Generally, installment loans are more affordable and a safer alternative to title and payday loans. They are also generally preferred to open-ended credit like credit cards. In 2007, the United States Department of Defense made some adjustments with respect to these loans.
They exempted installment loans from legislation meant to prevent predatory lending to the service personnel as well as their families. There was need to protect any access to beneficial installment credit as they closed down other less safe types of credit
Loans to Cover Business Expenses
Installment loans include business and consumer loans for vacation or equipment too. The loans are commonly secured by the personal property of the borrower or the item purchased; however, it excludes real estate.
Installment accounts and revolving accounts are two different accounts that involve credit. They may be similar, but there are some notable differences between the way the two accounts work and the impact they have on your financial life.
How Installment Loans Work
Examples of direct lender installment loans are mortgage loans, personal loans, and auto loans. Apart from mortgage loans, which are mostly variable-rate loans where the interest rate changes during the period of the loan.
Almost every other installment loans are fixed-rate, meaning the charged interest rate over the term of the loan remains fixed at the time of borrowing. It is an advantage since the amount of regular payment, which is done monthly stays the same throughout the loan term, it is easier for the borrower to budget in advance for the required payments.
Secured and Unsecured Loan Options
There are two categories of installment loans, namely secured and unsecured. Mortgage loans are usually secured or collateralized with the specific house that the loan is being used to purchase; the vehicle purchased with an auto loan serves as the collateral for the loan.
Other installment loans like personal loans are extended without the requirement for collateral and are known as unsecured. Such loans that don’t need collateral are given out depending on the creditworthiness of the borrower, usually indicated by the credit score and the ability to pay back shown by the assets or income of the borrower.
The interest rates charged on unsecured loans are usually higher than other rates that would be charged on collateralized loan to reflect the higher risk of non-payment the creditor accepts.
Advantages and Disadvantages of Installment Loans
Installment loans are incredibly flexible and are easily tailored to suit specific needs of the borrower in terms of the length of time and the loan amount that will best match the borrower’s ability to pay back the loan.
Installment loans allow the borrower to obtain funds at a significantly lower interest rate than what is always available with revolving credit financing like certain credit cards, bank overdrafts or payday loans. In this way, the borrower gets to keep more cash on hand for use on other purposes instead of making a large cash outlay.
The drawback of installment loans is that the borrower may have to make payments on fixed-interest loans at higher interest rates than the current market rate for longer-term loans.
Another major disadvantage of installment loans comes from the borrower being locked into long-term financial obligations. It may reach a point where circumstances will force the borrower to be unable of meeting scheduled payments; consequently, the borrower risks default and probably the forfeiture of any collateral meant to secure the loan.
No Hard Credit Check Installment Loans
There is no hard credit check with the direct lenders in our network. If you wish to apply for an installment loan, your FICO credit score will not be a factor and the loan application will not show up on your credit report.
How Credit Score Affect Interest Rates
Interest rates have a significant impact on the cost you have to pay for borrowing money. Since loan payments include the interest and principal, it will be easier to pay back a low-interest rate loan because there will be less interest added to monthly payments. These types of loans are mostly sought after because the borrower pays less money to the bank where the loan is obtained.
The interest rates on credit cards are not set randomly; banks use your credit score to establish this. A credit score is an indicator of credit-worthiness – a significant factor that will have a bearing on your interest rate.
What Credit Scores Mean
Your credit score ranges from at least 300 to 850. Higher credit scores are better since they indicate that you have handled your credit well during the past and you are highly likely to pay your credit on time when you apply for one. On the contrary, lower credit scores show that you previously made big mistakes in the past, and it indicates you will possibly not pay back when given new credit.
Banks will set interest rates depending on the risk you pose. The interest rate will be higher when your credit risk appears to be higher; if your credit score is extremely low, you may be denied new credit. But if you have a lower credit risk reflected by a high credit score, you qualify for a lower interest rate.
Issuers of credit cards disclose the appropriate range of possible interest rates with every credit card offer. For instance, depending on creditworthiness, a card may advertise an APR ranging from 13.99 to 22.99%. The final APR would be somewhere around that range because of other risk factors or your credit score.
Credit card issuers will not advertise the specific credit score that will give you a required interest rate. That will not be determined until the time you make a credit card application. Expect a lower APR if you have a good credit score and a higher APR if you have a bad credit score.
Bad Credit Scores and Installment Loan Rates
An average rate is advertised for loans instead of a range. When you have a good credit score, you will qualify for a rate that is below or at average. With a bad credit score, you will get a rate that is far above the average.
You can do an online search for local loans issued in your area depending on your credit score. Doing research will give you better ideas on interest rates you may qualify for.
With Cash King Co. you can rest easy knowing your credit score will not be a factor in the lending decision. There are no hard credit checks with direct lenders in our installment loan network.
Calculate and Compare Your Loan Payments
Some sites have loan savings calculator that will show you the amount you can save on a loan depending on your credit score. In case you already know your credit score, the calculator can provide you an estimation of terms that you can expect. But you won't know your particular APR unless you make an application and get approved for a loan.
Concerning lousy interest rates, banks must provide a free copy of your credit score to have the approval of less than favorable interest rates. Disclosure of the credit score may include some details about what are the reasons for your credit score.
Make it your aim to raise your credit score by spending a few months to work on it; this will improve your chances of receiving a better interest rate. It is especially vital with major loans like a mortgage where low credit scores may increase your monthly payment from hundreds of dollars in interest throughout the life of the loan.
How Online Loans Work
A loan acquired through the internet is known as an online loan. There are several types of online loans, with some being safe and others having higher risk. Money borrowed from a direct lender that operates online is an online loan. The exact process of applying for an online loan may vary depending on the lender, but there are many similar features across the board.
Also See: $5000 Loans Online
For the application of an online loan, visit the direct lender’s website to fill out the form for loan application. Many direct lenders have to carry out a credit check to analyze your creditworthiness. The results will determine whether online lenders will approve your request. That is not the case with Cash King Co.
In case you are approved, the online direct lender makes sure your funds are directly deposited into your bank account. When the time to pay back the loan reaches, some lenders will instantly withdraw the money to remove the amount you owe; therefore, ensure that you have sufficient money to cover the payment.
Finding Safe Loans Online
Not all online loans are safe. With traditional lenders, you must have a good credit score to be approved. Other lenders don’t require good credit, and some will not bother at all to check your credit. It may sound great, but not all lenders who give out no credit check loans can be trusted.
Most title and online payday lenders also don’t conduct credit checks. When you miss payments, they profit, and they will charge you additional interest and fees; some rely on these extra costs to make money.
Credit checks are essential because they make you know you don’t qualify for a specific loan that you cant afford. Keep off title and payday lenders that have been connected to predatory practices. If you want to find an online loan with no credit checks, opt for lenders who carry out ‘soft’ test on your credit to determine your creditworthiness.
Direct Online Loans Are More Convenient
Online loans are different from other traditional loans because most people find them more convenient. The application process is done entirely online, and the funds are directly deposited into your account. In terms of accessibility, online loans are faster than traditional loans. Traditional lenders require days or weeks to deny or approve a loan whereas online lenders take minutes.
It is easier for a borrower to find a lower interest rate with an online lender because operational charges for online lending are somewhat cheaper than traditional financial institutions. Online lenders take the savings and give them to you.
Other Types of Online Loans
Main types of online loans include payday loans which are short-term with very high-interest rates. The common term for payday loans is two weeks long with an average APR of around 300 percent. The average principal for payday loans is $350.
The mode of paying back is different because it has to be paid back in one lump sum; this arrangement can be complicated for most borrowers to pay back the loan in full. Many payday lenders have the option of rolling the loan over if you are unable to pay back the loan.
Rollover is prohibited in many states because it is predatory in nature; it is very easy for borrowers to continue rolling over the loan and pay more and more without getting close to repaying the loan. In some states, it is illegal for online lenders to provide loans to customers who live there.
Title loans are similar to payday loans, but they are secured by high-priced items; they have more substantial loan amounts. With a title loan, any average borrower gets any amount ranging $100 to $10,000 when the average payday borrower will receive $350.
Student loans are available to consumer who will be using the for continuing education. These loans usually have a low interest rate and many years to repay the funds.
Why Choose an Installment Loan From a Direct Lender
We can help you get an installment loan from a direct lender without having to complete hundreds of online applications. We have an all star group of trusted direct lenders that are ready to help you.
|Thomas Moore is a proud American with a Bachelors Degree in Business Administration from the University of San Diego. He has been in the financial industry for many years holding numerous licenses in multiple states. He currently helps operate cashkingco.com and is our resident expert on all things finance and a great writer. Thomas is also an avid outdoor enthusiast that loves fly fishing streams in the Western United States. LinkedIn Profile
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