Can’t pay your bills because you’re short on cash? Consider getting a personal installment loan to cover some of your expenses. Here’s what a personal installment loan is and how you can get one.
What Is a Personal Installment Loan?
An installment loan is a personal loan that allows you to borrow a set amount of money. Unlike with credit cards, you must first determine the exact amount you wish to borrow. Lift Credit offers loans of up to $5,000.
After receiving the money, you have to repay the lender in installments within the agreed time limit, which can be months or years, depending on the lender. Payments are often made monthly in fixed amounts or scheduled on specific dates as agreed upon.
When Should You Take Out an Installment Loan?
Taking a personal installment loan might be the right choice when you need cash fast. For instance, you might have emergency hospital bills or car repairs to pay. With installment loans, applying and getting approved typically takes only a few minutes, especially when you do it online. With Lift Credit, you’ll even receive the funds on the next business day.
Other Benefits of Taking a Personal Installment Loan
- Consolidate Loans: If you have other, smaller debts, you can use installment loans to pay for them all. You’d then only have to concentrate on making one loan payment each month.
- No Collateral: Personal installment loans usually don’t require collateral, which means you don’t have to worry about the lender seizing your assets if you can’t make payments.
- More Manageable Payments: You’ll get all your loan terms upfront, making it easier to calculate your loan payments more predictably so you can work them into your budget.
What Happens If You Pay Off an Installment Loan Early?
When you pay off your loan early, lenders might charge you with a prepayment penalty fee in exchange for no longer getting a profit from the interest you would have paid.
Fortunately, Lift Credit doesn’t charge prepayment fees, so you’ll be free to pay the loan off as early as you like.
Where Can You Apply for Personal Installment Loans?
You can apply for installment loans at banks, credit unions, and online lenders throughout the country. However, if you’re only looking to borrow a smaller amount of money quickly, an online lender like Lift Credit might be best for you. We offer fast online installment loans for residents in:
How Do You Apply for an Online Installment Loan?
When applying for an installment loan, you’ll need to provide:
- Your personal information (name, address, contact details, etc.)
- The amount you want to borrow
- Your payment schedule
Depending on the lender, you may also need to comply with other requirements such as:
- A valid ID
- Proof of income
- A working bank account (some require a checking account)
What Credit Score Do You Need for an Installment Loan?
Banks and credit unions typically only cater to applicants with good credit scores since there’s less risk of the borrower missing payments.
If you have a low credit score or don’t have any history, you could opt for an online lender. For instance, applying at Lift Credit does NOT affect your FICO credit score and can accept applications regardless of scores or background.
Learn More about Installment Loans with Lift Credit
Knowing what an installment loan is can help you decide whether you need one right now. To learn more about our loans, visit our blog, where we discuss various financial topics. You can also contact us for other inquiries.
