Long Term Installment Loans No Credit Check
For those who struggle with financial constraints and also bad credit, installment loans can be the best thing. Unlike short term loans, installment loans allow you to repay the loan in installments. Pre-defined installments can offer you a breather when you are constantly strapped for cash.
Those who are familiar with installment loans understand that they have distinct advantages over other types of loans, including payday loans. For one, they do not tighten the noose every time you get a paycheck.
Listed below are lenders and connectors with low credit score requirements, or no traditional credit check at all as they only verify your income and identity. Requirements can be as low as $800 per month pre-tax.
In this post, we take an in-depth look at long term installment loans no credit check.
What is an installment loan?
It is a type of loan which is defined by a specific loan term and fixed monthly payments. Installments loans have a repayment term from three months to seven years. The loan amount can range from $300 to $35,000 on both ends.
The repayment term, as well as the loan amount, differs from one lender to the other. But irrespective of the lender or the conditions, for a loan to be qualified as installment loans, at least two installments are paid towards the loan.
Long term installment loans with no credit check explained
For most lenders, an installment for bad credit is a sub-segment of installment loans. Long term installment loans essentially have a term from three years to seven. However, in some cases, it may run as long as 30 years. In this case, collateral of some sort might be required.
But when it comes to an installment loan with bad credit, most lenders do not make collateral a requirement. They also do not make it mandatory for you to have a good credit score. In fact, few of these lenders perform a credit check to approve the loan application, instead they only demand a proof of income like a pay stub.
Installment loans are preferable over payday loans as they give you more flexibility to manage your loans and overall finances. Unlike payday loans that fork out a chunk from your monthly paycheck, you These types of loans can be secured from non-banking financial institutions or NBFI. Most of the NFBIs have their own terms and conditions. But they are primarily regulated by the state as well as federal laws.have the option to select the term and repayment amount according to your finances.
There is another type called tribal installment loans. They are often regulated by tribal entities that are recognized by the federal government. They are also called tribal lending entities or TLE in some states.
Both NBFIs and TLEs operate online as well as in brick and mortar establishments.
Requirements for long term installment loans
The requirements for long term installment loans tend to vary from one lender to the other. Different states also have their own laws regarding long term installments. With that in mind, the basic requirements for long term installment loans are:
- Minimum age of 18, but 21 is considered perfect
- A monthly income of $800 at a minimum. Some lenders might require $2000 pre-tax
- Proof of income whether employed or unemployed
- An active bank account
- An identity card issued by the state
Benefits with installment loans
There are a number of benefits with installment loans which include:
- Ease of application – One of the best features of installment loans is the ease of loan application. Since most of the lenders have online platforms, you don’t even have to leave your home to fill out the forms. Of course, you can also choose to visit a physical store as well because most lenders run their business with an offline establishment.
- Faster loan approval – Another distinct benefit of installment loans is that they have an instant decision feature. Most online lenders have a decision time of not more than 1.5 minutes, which is almost instantaneous. This means that same day deposit is possible if your installment loan application gets approved.Even if your loan application does not get approved, most lenders will waste no time in giving you the information. So you waste no time and can go on with your search.
- Build a better credit score – Making monthly payments while repaying your installment loans can boost your credit scores. Unlike payday loans and their lenders who don’t make it necessary to report on time to credit bureaus, installment loan providers monitor your payment history a lot more diligently.Since installment amounts are fixed, you will be making monthly payments. When you do this, it shows the lenders that you are responsible with your finances. This, in turn, can pull up your credit scores steadily.
- Higher loan amount – Most institutions and lenders are willing to hand out a higher loan amount when it comes to installment loans. One of the main reasoning behind this is that since you will be repaying the loan over a longer period, you will have the funds to repay back.This can be a significant benefit, especially when you need a large amount of cash. It also saves you the trouble and headache of borrowing multiple small short term loans.
- Flexibility with repayment terms – Unlike some type of loans such as a payday loan, long term installment loans come with variable repayment terms. Most loan lenders will give you the option to choose anywhere from six months to seven years. You can also choose to repay a substantial amount within a short time. Alternatively, you can make smaller payments over an extended period as well.You get the freedom to pick the loan that you think is best for your financial situation. A bonus is that it gives you the chance to manage your finances.
- Multipurpose use – Long term installment loans can be used to cover medical expenses, vehicular emergencies, home renovations, and many more. They are very versatile as you can use them for any purpose as long as it is reasonable.
- Consolidate your debts – If you have a number of smaller amount loans in your portfolio, it can land you in big trouble over time. A long term installment loan can be a great solution to get rid of these smaller debts and focus on just one loan at a time.
Disadvantages with installment loans
After considering all the wonderful benefits of long term installment, it can be easy to assume that it is all rainbows. It’s not.
So in this section, we discuss the disadvantages of installment loans.
- High interest rates – This is perhaps the primary drawback of long term installment loans. They are not as high as a payday loan, for instance. However, they do come with high interest rates.The rates can increase even more if you have a credit score that is below 600. The reason loan lenders offset the increased interest rates with bad credit score is to make sure that their money comes back to them.
- No flexibility with the loan amount – If you think you can add more amounts to the installment after you sign the papers, you will be disappointed. So you need to carefully weigh your needs before you apply for the loan to avoid needing another one while repaying the first.
Summary
Long term installment loans that require no credit check can be a lifesaver in a lot of situations. The loan is not without its drawbacks, but it has better benefits than short term loans. And the best part is that you do not need a good credit score to get your loan application approved.
