By Contributing Author
Nowadays, most of the people have started to pay more attention to personal installment loans because of the benefits that this type of loan has. Anyway, even though this type of loan is becoming more and more popular, there are still people who choose to get payday loans. But, what people do not know is that a payday loan, also called a salary loan, payroll loan, payday advance, or cash advance loan has more disadvantages than advantages. A payday loan is a small amount of money which has a high-interest rate and needs to be repaid as soon as you receive your next wage. On the other hand, personal installment loans do not work this way. Thus, a personal installment loan means that you borrow an amount of money that you must pay back over a period of time. Of course, you will pay it in regular and monthly payments, but the best part is that the debt will be adjusted to your income, so you will always have the assurance that you will be able to pay it off.
How can you qualify for a personal installment loan?
People who desperately need money have the possibility to apply to the online financial companies in order to get a personal installment loan. But, if you want your loan application to be approved, you must meet some demands such as:
- You must provide your lender with your bank account.
- You must be over 25 years old.
- Your income must amount at least $1300.
- You must provide your lender with a proof of employment such as a recent paycheck stub or a letter from your employer.
The pros of personal installment loans
- The debt of installment loans can be adjusted to your income: Applying for installment loans is very profitable as you borrow once and then pay off a monthly debt. Moreover, you can agree with your lender for your debt needs to be adjusted to your income, so you can actually afford to pay it. Also, you can always prolong your payment with a help of installments. This means that you can pay bigger payments and acquit your debt quicker or you can pay fewer payments and acquit your debt as slowly as you want to. Your installments give you the possibility to pay the debt off within 2 months or 1 year.
- Having a bad credit does not stop you from getting an installment loan: Getting a payday loan relies very much on your credit, but it is not the same case for personal installment loans. Likewise, most of the financial companies offer installment loans even when you have a bad credit. Thus, compared to other loans, an installment loan is better because it does not bank on how good your credit score is.
- The application process is very easy: Another advantage of getting a personal installment loan is the easy application process for it. If you meet the demands above-mentioned, then your loan application will most likely be approved.