An installment loan from a company like Maxlend Loans allows a consumer to borrow money and pay it back over time. The payments may be twice-monthly or once per month, and the borrower must set up a payment arrangement that he or she can afford. Customers typically can extend this arrangement anywhere from six to 12 months.
No Collateral or Credit Checks
These loans have the advantage of not requiring collateral, such as a car title. They normally don’t require credit checks, which is important for people with poor credit scores or no credit history. Some require verification of income while others do not. The customer nearly always must have a current checking account. With online loans, the money is deposited directly into that account. Payments are made through the account as an electronic checking transaction or with a debit card.
Affordable Payments Over Time
Because of the installment payment feature, these loans can be more affordable than payday loans that require full payment of principal plus interest by the next pay date. Instead, payments are lower when made over several months.
Online lending products allow prospective borrowers to apply through the website. They fill out an application there and agree to the company’s terms of service. Usually, they learn within a few minutes whether or not their application has been approved and for how much cash. The money most commonly is deposited the next business day.
Important Payment Considerations
Although the length of the loan term is relatively lengthy to make the payments more affordable, the borrower should set a goal to pay off the full amount as soon as possible. That cuts finance charges substantially.
Making payments on time is important. It keeps the customer in excellent standing with the company, making this person eligible to apply for another loan in the future if fast cash is needed. These lending companies usually set up an automatic withdrawal for the due date to make sure they receive their payment on time. The customer has the option of making that payment earlier with a debit card if the money is available.