Top 6 Factors determining loan amounts for Bad Credit Online installment loans
In today’s economy, online lending is quickly becoming the best option for people with cash needs. With online installment loans, you can get approved for up to $4,000 within 24 hours. If that isn’t fast enough for you, online lenders compete with one another to ensure that your money arrives as soon as possible. You can usually expect an answer within minutes after completing the online application. To qualify for an online installment loan you must be 18 or older and have a bank account where you receive direct deposits every month (no exceptions). It’s easy to see why this type of financial assistance has become so popular; however, like all financial products there are factors that affect the approval process. By knowing what online lenders consider important, you can make an informed decision on whether online installment loans are right for you.
Here are the top 6 factors to consider before applying for online installment loans:
- Loan Amount – The amount of your loan will depend on your credit score, income level, debt-to-income ratio and length of employment.
- Credit Score – Your credit score is a number between 300 and 850 which shows lenders how likely you are to repay them in full with interest within the agreed upon time frame (usually 30 days). If it’s too low, then they may not approve your application at all or offer less than what you requested initially because they’re worried about whether or not you’ll pay them back in time.
- Income Level – Lenders want to make sure that if something were to happen where you couldn’t pay them back right away, then there would still be enough left over from your paycheck after paying other bills so that they could get their money back eventually without having any issues with being paid off first by another creditor such as a bank or credit card company etc.
- Debt-to-Income Ratio – This is simply a percentage calculation based on how much money goes towards paying off debts every month versus what’s leftover for living expenses like rent/mortgage payments, utilities etc… For example if someone makes $2000 per month but has $1000 worth of bills that need to be paid then they would have a 50% debt-to-income ratio. A new loan application with some of these factors in mind, may help you get approved for more money than what you originally requested.
- Length of Employment – Most lenders like to see at least 3 months of steady employment on record before approving an online loan.
- Collateral Value – If you have something of value that can be used as collateral, it’s good to mention this because some lenders may give a higher loan amount if they know they’ll be able to keep your car or other property if you default on the payment. Keep in mind that all these factors will help determine how much money an individual may qualify for with this type of loan which is why it’s important to consider them before applying.
To help illustrate how online installment loans work, let’s say John needs $4k within 24 hours. John doesn’t have any cash on hand, so he requests online installment loans. Since online installment loans are for people with bad credit, online lenders will check your credit history to see if you qualify. If you don’t have any credit history or your score is low, online lenders will assume that you aren’t responsible with money and won’t extend the loan agreement. Without a good credit standing, online installment loans simply aren’t an option.
The application process can be completed online 24 hours a day, seven days a week; at Advance Financial we have someone available 24 hours a day 7 days a week for you to submit your information. We are not a traditional lender, we know you work and want to make sure we are available for you when you have time.
Online lenders offering bad credit online installment loans want to know what you do for a living – when they approve your loan it’s because they believe in your ability to repay the loan. As part of this process, online lenders will ask about your income and whether or not you have any other financial obligations besides paying back the online installment loan. If online lenders are confident in your earning potential, they may be willing to offer higher amounts of online installment loans.
Some online installment loan lenders approve online installment loans based on your debt-to-income ratio. This ratio demonstrates the relationship between the monthly payments you make to creditors and your monthly income from work, investments, etc. If your online lender determines that you spend more money than you earn each month, they may get nervous because this could indicate an inability to pay back online installment loans. In order to get approved for online installment loans, online lenders consider this factor when determining how much money you can borrow with an online installment loan.
The need for fast cash is a very real thing, and when you’re in a time crunch, it can be hard to know where to turn. It’s important that you have all the necessary information before making any decisions about whether or not online installment loans are right for you. This blog post has outlined some of the more crucial factors that will help determine how much money an individual may qualify for with this type of loan. Apply today and get the cash you need!