What Are Instant Funding Installment Loans?
Installment loans are loans that come in the form of one lump sum to be paid back in monthly payments or installments. The repayment period for these loans can range from a few months to several years, depending on the lender you’re borrowing from and their terms.
As the name suggests, instant funding installment loans allow you to get the funds you need quickly. You may be able to receive the funds as soon as possible after signing the agreement with your lenders.
What Can an Instant Funding Installment Loan Be Used For?
You can use an instant funding installment loan for almost any need you have. Most people generally take an installment loan when they have an urgent financial need or need extra funds for a project or event.
Here are some of the ways you can use an instant funding installment loan:
If you have an urgent expense, like a hospital bill, unanticipated travel, or car repairs, an installment loan could help you solve the problem. And since these loans have quick funding, you can get the money you need within the shortest time possible.
If you are overburdened by multiple debts, you can use an installment loan to pay them off, so you are left with a single loan. This simplifies your monthly payments, and you may even be able to pay down your debt quicker.
Home Renovations or Repairs
Have you been postponing some critical bathroom renovations or kitchen floor repairs because you don’t have enough money? If yes, an instant funding installment loan can give you the lump sum you need to complete these projects. This may even be a better option than using your savings, as the cost of the project is distributed over several months or years of the loan.
What Should I Know Before Getting an Instant Funding Installment Loan?
If you’re looking for an instant funding installment, you should be aware that lenders determine your loan eligibility and rates to offer you based on your risk profile. If they consider you a high-risk individual, you may be disqualified from getting a loan or qualify for a loan with high-interest rates.
To qualify for a loan with favorable rates, you’ll need to convince the installment loan direct lender that you’re not a risk and can repay the loan in full.
One of the factors that most lenders check when offering loans is your credit score. If you have a bad credit score, you are considered a risk. Therefore, before applying for an installment loan, it’s a good idea to check your credit score. If your credit scores are too low, you can work on improving them first. Here are some of the strategies you can use to improve your credit scores:
- Pay bills on time
- Pay down revolving account balances
- Limit your credit account applications
- Dispute credit report errors
With good credit scores, it’s easier to get the installment loan you need at a lower rate.
Do I Qualify For Instant Funding Installment Loans?
To qualify for an installment loan, here are some of the requirements you’re required to meet:
- Be at least 18 years old
- Have an active phone number and bank account
- Have a valid Social Security Number (SSN)
- Have a valid email address
- Be a resident of the state from where you make your loan application
- Have proof of a steady income source
Different lenders may have other conditions that you need to meet. Thus, be sure to confirm with your lender before making your application.
How to Get Instant Funding Installment Loans with CocoLoan?
Once you’ve decided you want to apply for an instant funding installment loan through CocoLoan, you can complete the application by taking the following steps:
Submit Basic Information
The first step is to submit basic information through a simple loan application form. This information includes your name, contacts, financial information, and credit history. To make it quick and smooth, have any necessary identification and income documentation ready before applying for a loan.
Choose a Lender
After receiving your online form, we will forward it to our extensive list of lenders. Several lenders will then get back to you with their offers. Compare the offers and choose the lender whose offer suits you best.
Sign the Agreement
The lender you’ve chosen may require you to send some final documentation, like your bank account information. Once this is done, the only remaining thing is to sign the loan agreement.
Receive Your Money
The lender will send the money to your bank as soon as the next business day. You can access the funds and use them to sort out your needs.
How much would you like to borrow?
Pros and Cons of Instant Funding Installment Loans
Like any other type of loan, an instant funding installment loan has various pros and cons. Here are some of them:
Certainty Over Your Monthly Payments
The monthly payments for instant funding installment loans remain fixed throughout the loan term. The lender cannot increase or reduce the installment loan unless you ask for a loan restructure. This certainty over payments allows you to plan your paycheck, so you can pay off the loan with minimal hassle.
You Can Pay Off the Loan Early
If you’ve taken the loan while in a difficult financial situation, but you’re now doing good financially, you can pay off the installment loan and remain debt free. However, talk to your lender before doing it, as some lenders often charge early repayment fees.
Can Build Your Credit
If you have a low credit score, an installment loan can help you rebuild it. Most lenders will report your credit history to one of the main credit bureaus. You only need to make your monthly payments on time without fail.
Once you’ve taken an installment loan, you cannot get additional funding on the loan. This is different from lines of credit that allow you to borrow money repeatedly.
Higher Interest Rates for People With Low Credit
Depending on the lender, you may incur high-interest rates on your loan if you have a bad credit score.
Instant Funding Installment Loan Vs. Instant Funding Payday Loan
Instant funding installment loans and instant funding payday loans are both good options when you need quick money to cover your needs. However, they also differ in various aspects.
For starters, installment loans are long-term loans that need to be repaid in monthly payments over several months or years. In contrast, payday loans are short-term loans that typically need to be repaid by the next pay date.
Also, some installment loan lenders will often conduct a hard credit check to determine creditworthiness and the rates to charge you. With payday loans, most payday lenders usually conduct soft credit checks, and credit may not be a significant factor for loan approval.