Installment Loans in Brookhaven MS
The concept behind installment loans is rather simple; you apply for it, you obtain your loan, you then pay back the loan with a series of payments spread over a certain period of time.
Installment loans are the most common type of loan in the world largely because of the simplicity of making installment payments that are relatively less burdensome compared to other loan types.
Acquiring Online Installment Loans
A shortfall on your budget because of an unexpected expense can easily throw you off guard. An excellent way to get the funds that you need with a payment scheme that is easy on your wallet is the ever-popular installment loan. It can remarkably work for you even if you have bad credit.
Installment Loan Options for Bad Credit
Even if you are weighed down with bad credit, installment loans are an ideal alternative to quick or instant cash loans. You can apply for personal installment loans online, which is a great convenience. These loans are not payday loans wherein payment has to be completed in a very short amount of time with high interest rates. Installments loans are a type of loan that gives you more flexibility to repay the loan with a fixed number of payments over a longer time frame, at the same time giving you lower interest rates.
Comparing Installment Loans To Other Loan Types
Online installment loans acquired through Bank of Brookhaven are totally different from acquiring a loan from a traditional direct lender. In lieu of going through the process of waiting for an individual lender’s decision, we connect you to a network of lenders who are willing to do business with you. We can also help you acquire payday loans if you are in need of fast cash.
FAQs on Installment Loans
What exactly is an installment loan?
An installment loan is a personal loan that is payable over a more extended period of time as compared to a payday loan. You can often pay this type of loan early without incurring a pre-payment penalty.
How much am I allowed in an installment loan?
You can get as much as $1,000 when you apply with us at Bank of Brookhaven.
How much does it cost if I apply for an installment loan?
The cost of borrowing an installment loan depends on factors such as the amount of the loan, and the length of payment of the loan.
How long does the approval for an installment loan take?
At Bank of Brookhaven, we provide you with quick and almost instant decisions that could take a few hours to a few business days in some cases. Approvals also vary with individual direct lenders.
Can I get a loan even if I have bad credit?
Approval is dependent on the direct lender, but we have had customers with poor or bad credit who have been approved for an installment loan.
Will my credit be checked when I apply for an installment loan?
Bank of Brookhaven has an extensive network of lenders, some of whom may do checks with credit bureaus. Some do not, so even if you have bad credit, you can still get an approval on your application.
How do I apply for an installment loan?
To get you started, simply fill-up our online installment loan application. With our almost instant decision process, you will know promptly if you are qualified for a loan.
What are the requirements for an installment loan?
Proof of employment or a regular source of income, identification showing you are within the minimum age requirement, your contact details, and a valid checking account are some of the requirements you need to present when you apply for an installment loan.
Can I still get an installment loan even if I am currently under a payday loan?
Yes, but you need to pay both loans simultaneously, and having multiple loans can be quite tricky.
Which is better, a payday loan or an installment loan?
On the one hand, installment loans tend to have more extended repayment periods and lower interest rates. On the other hand, payday loans have faster approvals and will be a more appropriate match for you if you have bad credit.
What will happen if I do not pay back my installment loan?
When you default on that loan, penalties, interest charges, and fees may build-up, leaving you owing more money. It can also put a negative effect on your credit score, making it difficult for you to receive credit in the future.
Your loan will be sent to a debt collection agency who will pursue debt collection efforts. Your lender or even the collection agency can take you to court and, should they win, a garnishment on your wages may be ordered.
What will happen if I cannot make payments on my installment loan?
You must get in touch with the lender so that you can work together to explore other options for payment. Although we cannot assure you that the direct lenders will agree to other methods of payment, talking to them to discuss whatever options are available is your best bet.
Do installment loans hurt your credit?
Paying your installment loan on time should not, in any way, affect your credit negatively.
Financial Implications of Installment Loans
Before applying for an online loan, it will be in your best interest to review and consider the following things so that you would know if this is the right remedy for your financial needs.
APR or Annual Percentage Rate
Interest rates on installment loans cannot be expressed as APR, mainly because installment loans typically have payment terms of a few weeks to a few months at the most. If, however, there is a need to express the terms as annualized interest, installment, and other short-term loans can be charged a higher APR.
In general, the higher the principal and the longer the term, the lower the APR becomes. For example, a $32 fee for a $100 bounced check will amount to 2,336% APR, while a $46 reconnection fee for a $100 utility bill will amount to 1,203% APR.
Credit Impact
Your credit rating plays a major role in the approval of your installment loan application. Lenders may view credit scores from three main credit rating agencies, Equifax, Transunion, and Experian. Examining such scores is wholly upon the discretion of the lender, although their decision does not rely solely upon these scores.
It is the lender’s prerogative to submit requests for the loan or payments on the loan to the agencies, and lenders usually have their own criteria for loan approvals. Factors such as employment, income, and ability to pay, along with the borrowing history with the lender in question or even with other lenders come into play. Suffice it to say that lenders perform credit checks even on installment loans that boast of no credit checks.
Fees
Installment loans are charged a flat fee per $100 lent, with loans more than 500 dollars having lower fees. These fees can be different with each company who is providing the loan. Bank of Brookhaven works with various lenders to help you seek short-term solutions such as payday, installment, and other similar loans.
Collection
When a loan becomes delinquent, the lender may instigate collection efforts internally first. This is usually done over the phone, working with the debtor to look for a payment plan that will match the borrower’s ability to pay the loan.
If these efforts should fail, they may enlist the services of a third party to collect the debt that was lent in good faith in the first place. It is highly recommended that you get in touch with the lender if you feel that you would have difficulty in paying your loan. Try to avoid defaulting on your loan or letting it become delinquent.
Smart Borrowing
Installment, short-term, and payday loans, and cash advances provide band-aid solutions only. They are not meant to address your deeper financial problems.
If you are experiencing long-term financial hardships, the best thing you can do is seek sound financial advice and planning from a debt counselor. Avoid multiple loans. Borrow what you can only afford to pay to help reduce the risk for you as a borrower and for your lender, as well.
When you apply online, you may get a prompt decision. If your application is approved, you will be redirected to a new page wherein you have the chance to review your approved loan with your direct lender.
The funds can then be sent straight to your checking or savings account since lenders mostly transfer money through direct deposits.
If you need help consolidating your debts, or you want help getting your financial situation in order, our online installment loans can be a crucial first step towards achieving that goal. They can also be instrumental in improving your credit standing.
If you feel that an online installment loan application is the right one for you, do not hesitate to call us at Bank of Brookhaven and get started right away!