Installment Loan without Credit Check with Nation21
Ever heard of a credible lending institution that is willing to grant an installment loan no credit check? Probably not. Turns out to be just a catchy phrase used by a majority of unscrupulous lenders to disguise payday loans.
While some benefit is to be got from getting funds from such a lender, the high-interest rates imposed on the borrowed amount serves to dampen the little relief that would have come from receiving the funds.
Nonetheless, desperate times do call for desperate measures. It is for this reason that you will find people taking up the offer of the installment loan despite the high cost of servicing it if only it will allow them to sort out the financial quagmire they find themselves in.
How Installment Loans with Soft Credit Check Works
Lenders who offer installment loan no credit check usually have other means of checking the suitability of the applicant for the loan. This means they are not limited to conducting the individual’s credit check as listed by major credit listing bureaus like Equifax or Experian.
Their main concern is usually the applicant’s ability to service the loan, so they rely on their source of income as a requirement before advancing the requested amount. This also makes the application and approval procedure rather smooth and fast, as this is done usually within 24 hours.
There are some drawbacks to this arrangement, mainly inform of the high-interest rates imposed on the loan amount and the short repayment periods. Some lenders demand that the sum loaned is repaid in a short period such as a week, while some go for up to just 10 days.
This makes the borrower in a collision course with the lender, with some being unable to clear the borrowed amount in the stipulated time. When such a situation arises, arrangements to make partial payments are made and the remaining amount is then carried over to the next payday. This, in turn, gets more expensive owing to the additional administrative costs and the resultant high-interest rates.
The subsequent scenario, coupled with the initial unfortunate situation that necessitated the borrower to approach the lender, leaves most folks in a cycle of debt that will take some time to get out of.
What to Consider When Applying for Such a bad Credit Installment Loan
From the factors mentioned herein, it is clear that while payday loans may qualify to be categorized as installment loans with no hard credit check , it would be erroneous to state that they are in the no credit check bracket.
This is because while they may not entirely rely on one’s credit information to base their lending decision, they require something that may guarantee the borrower’s ability to repay the loan. Mostly this is in the form of employment or source of income.
Therefore, one has to be able to show that they have a proven and veritable source of income to be able to qualify for such a service.
Also, it is important to note that while a payday loan can be negotiated to be paid in installments, the said installments may be so close together. Rarely do they get to be monthly, some are weekly or every 10 days.
This means that if one is not able to make a payment on the due date, the loan is rolled over to the next pay date with the amount paid used to clear the interests accrued and the administrative charges. In the long run, this ends up being so expensive because the premium remains unpaid and keeps gathering interest until one is able to offset the whole amount.
Alternatives Offered Online for No Credit Check Installment Loans
At Nation 21, we strive to link up borrowers who feel that the payday loans offered are expensive and with unrealistic terms, with lenders who are in the business of providing installment loan no credit check.
Such lenders operate under the terms of offering loans that are quite convenient, like payday loans bit with repayment terms that are basically like bank loans. This means that the borrower is able to access the loans fast, as fast as within 24 hours of applying for the loan, but at the same time, the repayments are to be in monthly installments, like bank loans.
Most of these lenders rely on other background checks, such as the ability to repay the loan. Usually, this is in the form of a veritable source of income.
Advantages of Online Installment Loan Lending Platforms
Since most of the installment loans direct lenders are online, the application process is simpler and convenient as one can access their websites at any time of day and from anywhere.
The approval process is also fast as there aren’t many stringent conditions that are to be passed.
Also, upon approval, the money is deposited to the borrower’s account within 24 hours. This makes it convenient as one is able to access the funds immediately.
Most lenders prefer using the same account to repay the loans. Therefore, this makes it convenient when making the installment payments.
Some lenders also use one’s ability to repay the installment loans on time to increase their loan limits and/or lower interest rates on future loans.
In case one is unable to make payments on the due date, the borrower can link up with the lender to devise a plan that is convenient and favorable to both parties without necessarily increasing the cost of the principal amount.
Word of Caution
Always read the fine print to determine if the lender offers genuine installment loans. Some are disguised as such but in truth only offer payday loans that turn out to be expensive and somewhat unrealistic.
An installment loan is supposed to be repaid in monthly installments, not weekly, bi-weekly or every 10 days, as is the case with payday loans.
Armed with this knowledge, we hope that you are able to find a reliable lender when the need arises for an installment loan. Nation 21 is here to help you every step of the way. With us, you can rest easy that you’ll find a reputable lender who matches what you want.