What Is the Criteria for Getting an Installment Loan Approved?

Scoring an installment loan does require undergoing an approval process, but it’s a faster way to get cash loans Houston TX residents need without the strict stipulations of traditional loans. Below are a few of the specifics that are looked at during the approval process.

The Differences In Payday and Installment Loans

A payday loan is one that is secured by a check against your bank account and has to be paid on your next pay date. An installment loan is one that is paid back over a longer period of time.

Income and Expenses

The amount of money you earn and the expenses you have will all figure prominently in whether you can afford an installment loan. If your expenses take up most of your income, you could face a challenge in getting a loan. It helps if you are not the sole breadwinner in the family.

Area of Residence

Basic information like name, address and employer will all have to be verified. It’s important to make sure no one is wrongfully taking out a loan in your name. The verification isn’t hard or time-consuming.

Amount Requested and Ability to Repay

Another bit of information that will have bearing on the decision is the amount of money you are requesting and why it’s needed. You are going to be more likely to get an installment loan for educational expenses than cosmetic surgery. Be prepared to answer questions as to the purpose of the loan.

Perfect for Those With Slightly Damaged or No Credit

Obtaining an installment loan is one way to establish or improve your credit. All activity on the account is reported to the credit bureaus. You can even pay the loan off early and save money on interest. Establishing a good relationship from the beginning is a way to maintain a solid lending source.

An installment loan is a convenient way to get a cash loan that allows a longer period to make payments. You need to check out the possibilities if you are looking for a fast way to get the money you need and improve your credit at the same time.