Online loans with monthly payments can help get you the cash you need for unexpected expenses. If you’re not sure where to start when it comes to getting an online installment loan, you’ve come to the right place!
We’re going to help you find an affordable installment loan, even if you have a poor credit score! We’ll explain what it means to take out an installment loan, how to avoid online loan traps and guide you on how you can get an online installment loan fast. Let’s get started!
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What is an installment loan?
An installment loan can give you a lump sum of cash in exchange for monthly repayments in the future. Installment loans are a type of non-revolving credit, meaning that when you apply for the loan, you’ll need to know the exact amount of money you want to borrow.
The opposite of non-revolving credit is revolving credit, which is credit that can be refilled so to speak. You can use it continuously up to your limit as long as you keep paying it back on time. Credit cards are the most common example of revolving credit.
How does an installment loan work?
There are two major elements of every installment loan: the principal and the interest rate. Your principal is the amount of money that you borrow when you first take out a loan. Interest is money that you pay to your lender in exchange for giving you the loan.
Every month, you’ll make a single payment that includes both principal and interest. It’s important to compare interest rates to ensure that you’re not overpaying for your loan. High interest rates can make it harder to pay off your loan, keeping you stuck in a cycle of debt.
You’ll usually see interest expressed alongside an annual percentage rate(APR). Your APR is your effective interest rate, and it tells you how much money you can expect to pay in interest on top of your loan amount each year. For example, if you take out a $1,000 loan with a 10% APR, it means that you’ll pay 10% of your loan balance, or $100, in interest every year.
There are a few different types of installment loans. Some installment loans are only intended for specific purchases like a mortgage loan or an auto loan. Other installment loans offer more freedom, like a personal loan. You can take out a personal loan for almost anything, from home repairs to books for college.
Can you get an online installment loan with bad credit?
It is possible to get an installment loan even if you have bad credit or no credit. Search for a lender willing to offer credit builder loans for people who have bad credit. For example, MoneyLion has a Credit Builder Plus loan designed for people who have low credit scores.
These loans are considered personal loans, but the lender will report your payments to the major credit reporting bureaus. This means that as long as you make your payments on time every month, then your loan will help you build up your credit score.
When searching for a loan that doesn’t require a hard credit check, be mindful when you read the terms and conditions. Some lenders will try to take advantage of borrowers who have low credit by charging high interest rates. Never sign for a loan before reading and understanding the interest rate associated with that loan.
Benefits of installment loans
You’ll have access to unique benefits when you secure an installment loan through MoneyLion. Here are some of the best reasons to choose MoneyLion for your installment loan.
MoneyLion’s Credit Builder loans start with an APR of 5.99% and their installment loan offers competitive rates, too. You can be sure you’re getting a fair rate when you get your credit builder or installment loan through MoneyLion.
Don’t worry about credit checks
You don’t have to worry about your credit score being affected when you get a credit builder loan from MoneyLion. All you need to do is qualify for the Credit Builder Plus membership.
After that, you’ll never find yourself needing to agree to a hard credit check. There’s also no credit pull required in order to check your rate on a MoneyLion installment loan either!
Receive funding fast
Looking for a fast and convenient loan? With MoneyLion’s easy payment options, you’ll get your money in no time. Once you sign up for a MoneyLion Credit Builder Plus account, you can get your loan directly from your smartphone.
Even better, the money will be instantly deposited into your account. You can get a larger installment loan with funding as quickly as two business days as well.
Improve your credit score
Get a loan and build your credit with an installment loan from MoneyLion. Seventy percent of people who take out a Credit Builder Plus loan with MoneyLion see their score improve by over 60 points within 60 days.
What to know when getting an online loan
There are plenty of legitimate online installment loan providers out there. Unfortunately, the ease and connectivity of the internet also means there are a number of installment loan troublemakers and scammers as well.
It’s important to be aware of fake online loan opportunities and pay close attention when you are comparing your loan options. Some offers can seem legitimate at first glance, but when you take a closer look, you’ll find that the offers are actually scams. Here are some red flags to watch out for when looking for an online loan.
Payday advance loans
No matter how desperate you are for a loan, you should always avoid payday loans. Providers of payday loans focus on getting money to you fast, though they do so at ludicrously high interest rates. Payday loan providers usually charge a fee to borrow money, as well as interest rates that can go up to almost 400% APR.
For example, this could result in a situation where you borrow a $1,000 loan at 300% APR. That means your loan amount will increase by about $8 per day due to interest alone. As a result, you’d end up paying a whopping $250 in interest by the time you pay off the loan itself.
Steer clear of all payday loan providers when you shop for a loan. Make it a point to avoid lenders who focus on very short-term loans as well. Never agree to a loan before you are made aware of the interest rate and terms associated with the loan as well.
Unsolicited loan offers
Legitimate lenders advertise their services in the ways that you’d expect, such as through TV commercials or online banner ads. Trustworthy lenders will never cold-call you or send unsolicited text messages your way.
Approvals guaranteed before you apply
Would you promise to loan money to a stranger if you didn’t know anything about the person? Probably not. Likewise, legitimate lenders operate under the same logic, meaning you’ll always be asked to submit some form of personal identification before being offered a loan if the loan is legitimate.
High-pressure sales tactics
Let’s say you apply for a loan online and you receive an approval. The amount of money offered in the loan is just what you need, and the APR is low. You might even have a grace period before you need to begin paying back the loan.
On the outside, it seems like you’ve found the perfect lender. But then, the lender tells you that you need to sign on the dotted line right now or the offer will go away forever.
Banks and lenders who use high-pressure sales tactics usually have something to hide. These lending sources take advantage of your financial needs to coerce you to sign a loan without fully reading and understanding the terms and conditions.
Other red flags
Here are some other red flags to look out for when you shop for a loan online:
- Several spelling or grammatical errors in the offer letter
- Copycat names that mimic legitimate banks such as “MomeyLion” or “Bank of Ameriica”
- A lack of professionalism during email or phone correspondence
- Lenders who contact you with a @gmail.com or @outlook.com email address
- Lenders who have websites that aren’t secure
- Lenders who ask for your personal information over the phone
Be wary of the lender if you notice any of these red flags.
Qualify for a MoneyLion online loan in minutes!
1. Download the app.
The first step to get a MoneyLion loan is to download the app. Go to Google Play or the Apple App store and search for the MoneyLion app. Once you have downloaded the app, open it and enter your phone number. From there, you’ll need to input the verification code that you receive via SMS. Then, follow the in-app instructions to open an account with MoneyLion.
2. Become a MoneyLion Credit Builder Plus member.
You’ll need to become a Credit Builder Plus member before you can get a Credit Builder loan from MoneyLion. So, start by applying for your MoneyLion Credit Builder Plus account. It’s a quick and easy process that you can complete through the app. And there’s no credit check!
3. Find out if your approved in minutes!
Once you’ve opened your account with MoneyLion, you can get a Credit Builder loan up to $1,000 at a low APR. Just submit a request for the loan through the MoneyLion app and get ready to have money deposited into your account within seconds. Your payments will be automatically deducted on your pay dates, making it easier and more manageable than alternative payment methods.
4. Watch your credit grow
Seventy percent of people who apply for MoneyLion’s Credit Builder loan see an increase of 30 points in their score within the span of 60 days! Every time you make a payment on your loan, MoneyLion will report your payment to all three credit bureaus. Over time, this can help you improve your credit score even if you don’t have an existing credit score.
Get your online loan with MoneyLion today!
Installment loans are a great way to secure quick cash to pay for unexpected expenses that life throws your way. Installment agreements are also a great way to build your credit score without using credit cards. Be sure to make payments on time to avoid a negative impact on your score.
You’ll be able to get up to $250 without the requirement of a hard credit check! Get started today by downloading the MoneyLion app from the Google Play or Apple App store.
How can I get an instant loan online?
When you sign up for a loan from MoneyLion, you’ll become a Credit Builder Plus member and get instant approval on your loan. You’ll have access to a portion of the funds right away, too.
What is the easiest payday loan to get approved for?
While you could opt for a payday loan, you’ll likely get hit with high-interest rates as a result. A great option for those of you who want to avoid high-interest rates is the Credit Builder Plus loan from MoneyLion. Approval is easy to achieve, and you can get up to $1,000 without having to agree to a hard credit check.