- No application fees when applying. No obligation to accept.
- Only work with FCA-accredited direct lenders. Compare trusted lenders online.
- Obtain instalment loans of up to £25,000, even if you have bad credit.
One of the reasons why a payday loan is popular is because it is fast and easy to acquire. Almost anyone can get it as long as they have a reliable source of income. The downside, however, is that it only offers a small amount. So if you’re looking for installment loans with a reasonable fund, you may opt for installment loans instead. Although it’s rarely offered on the same day you’ve applied, it’s won’t take months to acquire. The loan may offer a larger amount, starting from £100 up to £10,000. It is payable within a year or up to ten years, depending on the installment loans provider. Here’s what you need to know about the loan:
How Installment Loans Work?
An installment loan is any kind of loan that is settled in ongoing fixed regular installments. People who have a bad credit history or have no credit history at all can rely on this option, although this is also ideal for any borrowers with good or excellent credit remark. Every installment lender has their own terms and condition but basically, it looks like this:
- Loan Terms
The loan is payable between 6 months up to ten years.
- Payment Method
Normally, the installment loans lender will deduct the monthly repayment from your bank account, so you don’t have to visit them personally. Meanwhile, there are installment loans lenders who are willing to provide more convenient options for repaying the loan through an app, check, or online.
- Repayment Frequency
This depends on the agreed repayment pay date between you and the loan provider.
How Much Will It Cost You To Borrow?
This depends on the installment loans lender. Once your loan application is approved, the lender will ask you to sign a loan contract stating the terms and conditions, as well as the fees and other charges. Below are the costs that may apply:
- Annual Percentage Rate (APR)
A yearly percentage that includes all the fees and interest.
Some installment loans lenders may ask for a loan origination fee or charge you for early or late repayments.
This is the rate of the interest applied when borrowing a loan. It is usually expressed in percentage.
Am I Qualified To Get The Installment Loans?
Most installment loans, especially the ones from banks and traditional lending facilities, are hard to comply. Luckily for installment loans, all you have to do is meet the basic criteria such as the income, credit history, employment, and bank account. These crucial factors will determine your eligibility. If you have a bad credit rating and you’re worried about your credit report, you may ask your lender if they’re willing to accept your case or look for another one instead. To start the application, the applicant must complete an online loan application form that is consisting of personal to financial information, such as the borrower’s identification, income, employment details, and bank account information. Depending on the lender, some lenders may ask you to fax or scan other requirements.
Choosing A Lender
Aside from the type of loan, it’s crucial to find the right installment loans provider. It can be overwhelming at first but once you learned the difference between a reputable lender and a scammer, things will be easier. The first thing that you have to know is whether it’s licensed or not. Choosing to work in a company that has the right to operate is more peaceful than dealing with a wrong provider. Below are the other things you should consider: – Transparency If being honest and transparent is important on other things, what more if it involves money? Therefore, it’s important to choose a lender who is not hesitant to disclose rates, charges, and other policies involved in the contract. After all, it will feel so bad if you learned that you will settle hidden charges. – Good Customer Service No matter how known the lender is, there are still chances when you will encounter concerns. Thus, it’s good to find someone who will answer your problems in a friendly, professional manner. Find an installment loan company that is available 24/7 so you can still proceed with an application after office hours. – Low-Interest Rate The last thing you want when borrowing money is repaying a large amount, so stick to a lender that offers a lower interest rate. Before you hit the application button, do a research and learn the best deals available in your area. Find at least three to five lenders to compare. – Stability If the business is stable, chances are it is successful. So, find a lender who’s been in the lending industry for a long time, or at least a good number of years. This only shows that they have handled and survived different clients and struggles before you’ve applied.
Relying On Loan Brokers
Even if it’s not your first time to borrow a loan, choosing a lender is quite difficult. It’s normal and this is one of the reasons why a loan broker exists. These professionals have the right number of experience and education so they can attend to your concerns very well. Primarily, their job is to help you find the lender who will match your requirements. It is easier since they have a wide access to different loan providers. For instance, your income is low and you need a financial support; the loan broker will look for a lender who offers a lower interest rate so you can settle the debt easily. Although loan brokers are beneficial in some ways, they can be costly. So to avoid spending a lot, find someone who offers a free service. Technically, they will still earn but rather than getting the commission directly from you, he will acquire it from the lender after a successful application. On the other hand, if you’re not comfortable talking to another person, you may opt for a loan comparison site instead. This website offers a number of lenders and it has gathered all the necessary details such as the rate, policies, and repayment terms. The only thing you have to do is compare and find out which among those will suit you.
Instalment Loan FAQs
Do I need a guarantor to apply?
In most cases, you won’t be required to provide a guarantor when applying for loans. You can enter a loan agreement by yourself without having someone else co-sign.
What Interest rate is charged?
This will depend on your financial circumstances and the amount of time you need to repay the loan. In order to see the cheapest interest rates simply apply online to be presented with your options.
Must I pay application fees?
No. You will not be required to pay application fees of any type when applying for a loan. By using the Vamoola site you can be sure you’re only dealing with trusted UK direct lenders.
Can I get cash the same day?
Most of the time, cash will be deposited into your bank account on the day your application gets approved. If a larger amount is required, or further checks needed then the deposit may take longer.
How much cash can I borrow?
A process called auto decisioning will help determine how much you will be able to borrow without going short elsewhere in your budget. You can see how much you are eligible to borrow by simply applying online.
Must I provide security for my loan?
No. Nowadays, a number of lenders will be willing to provide loans without requiring any form of upfront security.