Everything You Need to Know About Monthly Installment Loans

No matter how good you are at creating and setting your budget, sometimes unexpected expenses creep up. It could be in the form of expensive appliances or sudden medical emergency. Get cash for any of your big-ticket item expenses and pay it off in the next few months through a monthly installment loan.

What is a monthly installment loan?

Monthly Installment Loans are short-term loans that you can pay over a period of time. Others call them monthly loans or fixed installment loans. Getting this type of loan is great because you won’t have to pay full price on your purchase. Managing your finances and budgeting would be easy with scheduled payments.

Starting your own business? Need some money to fund some big item purchases? Get smart and take out a monthly installment loan. Ease any big spending and break down any big purchases into smaller payments doled out over a few months.

Another excellent use for a monthly installment loan is consolidating any of your debts. Instead of paying the minimum amount due on your credit card, get a monthly installment loan to cover your entire credit card bill. Then, you can pay it off every month. You’ll dodge paying extra credit card fees and improve your credit scores.

How do I get my monthly installment loan application approved?

Applying for a loan can be nerve-wracking. Not knowing what to do or how to make sure you get approved can be stressful. Well, here are some tips to help you get your application approved.

Loan Approved

First, you have to check if you are eligible to get a monthly installment loan. There are different requirements for different lenders. However, in Tiempo Loans, the conditions are simple. You qualify if you have:

  • A stable source of income
  • Residence
  • No existing unpaid loans

If you are eligible; then, start your application. Apply online or call one of our offices for a consultation. You should also begin preparing the documents needed when you visit our office.

Bring the original and a copy of the following items:

  • Valid ID
  • Recent payslip or pay stub
  • Employment details (i.e., employer, annual income)
  • Bill Statement with your current address (i.e., water, utility, phone)
  • Contact details of your references:
    • CEmployer
    • CLandlord
    • CPersonal references

Make sure that your valid ID has your recent picture and clear signature. It should also have your current address. If you were renting and had to move, make sure that your ID and bill statements are updated. You also need proof of stable income, so you need to provide your employment details. Get a clear copy of your recent payslip or pay stub.

References would help establish your character. So, it’s better that you provide references from people who know how responsible you are. Inform your employer and landlord if you put them down as a reference. Try to ask your Church friends or co-workers to vouch for you, too.

As long as you can provide all necessary documents, you won’t have to worry about not getting approved for a monthly installment loan.

How is the monthly installment calculated?

In your loan application, indicate your desired loan amount. Based on the amount of time you will repay the loan, an interest fee will be applied. You will also pay a one-time acquisition fee per month.

At Tiempo Loans, we apply an interest fee of $4 per $100 and an acquisition fee of $10 per $100 of the borrowed amount. Here is an example of how you can calculate your interest and acquisition fees:

Desired Loan Amount: $250

Loan Maturity: 6 months

Interest Fee: $4 x 2.50 = $10

Interest Fee Applied over Loan Months: $10 x 6 months = $60

Acquisition Fee: $10 x 2.50 = $25

Total Fees: $85

Final amount for repayment: $335

Amount to pay per month: $335 / 6 = $55.83 per month

It’s a great relief how you can turn your high priced expenses into small, manageable payments. Instead of having to pay $250 up-front, you would only need to budget $55.83 every month. You don’t need to go bankrupt or sacrifice other financial responsibilities to get your desired amount.

If you want to lower the cost of your interest fees, lessen the number of months for when you have to pay off your loans. The longer you have to finish paying off your loan, the higher the interest fees would be.

Can you get an installment loan with bad credit?

Well, it depends on how bad your credit is. There are many reasons why you have bad credit. It could be because you were not able to pay your bills on time or forgetting to pay your outstanding debts. Lending companies accept borrowers with imperfect credit scores because we know that there are many factors to why it happened.

Bad credit does not equate to a bad borrower. Remember, one of the eligibility requirements is that you do not have any existing unpaid loans. As long as you have no unpaid loans, you can apply for a monthly installment loan.

There’s also a chance that you do not have any credit score at all. A lot of people do not have bank accounts or credit cards. So, they do not have any credit scores. If you fall into this category, getting any kind of loans from banks would be impossible. That’s not a problem with us. As long as you are eligible and submit complete documents, you can get your loan from us.

Do installment loans build credit?

Yes! Here’s a great advantage of having a monthly installment loan. If you have an imperfect credit score, you can start building up your score through your timely payments every month.

Tiempo Loans submits your financial data to a credit check company. Credit check companies create your financial profile based on data from lending, utility, and bank companies.

Timely payments will be a breeze for you because of the monthly repayment scheme. Instead of using your credit card or cash to make an expensive purchase, you can work your expenses into your monthly budget.

Which is better: payday loan or installment loan?

Payday or Installment

It all depends on your financial capacity to repay your loans and the amount you need. Payday loans are short-term loans that you need to pay as soon as you get your next salary. It’s equivalent to a cash advance. This means the loan amount you will be only be limited to your next salary’s amount. Once you receive your salary, you have to give it all up or risk getting more significant interests and lower credit scores.

If you need a more considerable amount, you may want to consider monthly installment loans. Since the repayment scheme is doled out for a period of time, a bigger amount can be awarded to you.

Also, if you have a tight budget every month, you should take on an installment loan instead of a payday loan. With its repayment schedule, it’ll be easier to work the repayments into your budget.

If you have a vehicle and need a big amount, you could also consider getting an auto title loan. Your vehicle will be put up as collateral, but not everyone wants to do that. A monthly installment loan is an excellent option for any borrower who does not want to put up collateral.

If you’re having any doubts about getting a monthly installment loan, call us for a consultation at any of our offices. Our agents would be happy to help you find the right loan type for you.

Tiempo Loans is a trusted local provider. We are authorized by the Office of Consumer Credit Commissioner (OCCC). We are also a proud member of the Texas Consumer Finance Association.

OCCC Logo
TCFA Logo

At Tiempo Loans, we provide the best rates and repayment structures for our clients. Apply now!