Were you recently denied a loan from your bank? Or maybe your application is still pending, and you need cash to pay a bill, buy food for your family, or cover an unexpected financial emergency.
An online installment loan is worth considering. It is far more affordable than a payday loan, and you will have more time to repay what you owe.
How Online Installment Loans Work
There are 2 types of online installment loan products to choose from:
- Traditional online installment loan
- No-credit-check installment loan
Traditional Online Installment Loan
Most lenders who extend traditional online installment loans require a credit check. If your credit score isn’t up to par, you could still qualify for a loan but with a higher interest rate. This helps protect the lender against the risk of default.
The amount you qualify for will depend on your income and current debt load. Lenders want to know that you can comfortably afford the monthly payment on top of your other obligations. So, they evaluate the funds you have coming in each month along with the expenses to reach a loan amount.
Terms generally span from 2 to 5 years. However, there’s no set rule, and lenders are free to decide on a shorter or longer period. Keep in mind that the longer the loan term, the more you’ll pay in interest over the life of the loan. So, don’t get tricked into repaying a loan for 6 years just to save a few dollars on the monthly payment. You’ll definitely pay for it in the end.
No-Credit-Check Installment Loan
A no-credit-check installment loan may seem like a viable option if your credit is in shambles. But there are factors to be cautious of.
These loans cater to subprime borrowers, and predatory lenders are well aware of the risks they pose. Consequently, the interest rates are high, and the lender may not give you much time to pay the loan in full.
Also, be mindful of the hefty fees that often accompany these products. Look for these hidden costs in the fine print that appears in the disclosure statements and loan documents.
A Quick Tip
Many online lenders have a pre-qualification tool on their website. When you input your information, a soft pull is done to your credit. The lender needs to determine how much you may qualify for and with what terms. Your credit score will not be impacted by using this tool.
Credit Builder Loans – A Safer Alternative for Your Finances
Times are tough, and there’s no need to spend a fortune in interest and fees on an expensive online installment loan product. A better option: a Credit Builder Loan from MoneyLion that helps you get back on track and boost your credit health.
You may qualify for a low-interest installment loan of up to $1,000. Even better, there are no credit checks. So even if the banks already said no, MoneyLion may say yes.
To be eligible, you need to securely link an active checking account that’s been open for at least 60 days and is currently in good standings. There should also be a history of deposits from wages, self-employment income, government benefits, child support or alimony.
Ready to apply? Here’s how the process works:
- Download the MoneyLion app to your mobile device.
- Create your free account.
- Link your bank account to apply for Credit Builder Plus.
- View your loan offer.
If you want to move forward, accept the loan offer and the funds will hit your bank account in minutes. You may receive up to all the funding in your bank account. Depending on your finances, some of the loan funding may be saved for you in a Credit Reserve Account in your name that earns interest. But don’t worry — those funds will get sent to you as soon too as you pay off your loan!
The affordable loan payments are deducted from your bank account to simplify the repayment process. You can view repayment activity on your dashboard to track the progress of your loan. It is also reported to the 3 credit bureaus – Experian, Equifax and TransUnion – to help boost your credit health.
Get started with a credit builder loan today for $19.99 per month. The Credit Build Plus membership also includes access to interest-free cash advances of up to $250, premium rewards, and banking and investing features.
Apply for an Online Installment Loan Today!
You deserve a loan that works hard for your finances. Instead of settling for an expensive online installment loan that costs you a fortune in interest, consider a credit builder loan from MoneyLion.
If approved, you’ll have the cash you need to pay that bill, purchase the food you need or take care of that unexpected financial emergency. Plus, your credit health will start to improve over time. That’s a win-win for your wallet and finances.