Installment Loans

Online installment loans are characterized by the borrower repaying the borrowed sum through fixed monthly payments or “installments.” They cater to individuals with various credit histories, including those with poor credit scores. Unlike some traditional loans that demand a good or fair credit profile, these loans offer a lifeline to those who may have struggled with their financial past.

Statistics from the Federal Reserve Bank of New York reveal the popularity of installment loans, with approximately 27.5% of American adults holding at least one installment loan in the third quarter of 2020. This prevalence highlights the trust and reliance placed in this form of credit by individuals seeking financial assistance. 

The defining feature of installment loans is the structured repayment schedule, where borrowers steadily pay back the principal amount and interest through a series of scheduled installments, as opposed to a lump-sum payment requirement. Other popular loan types include bad credit loans, cash advance loans, and payday loans.

What are Installment Loans?

An installment loan is a loan that can be repaid over a course of multiple repayments, rather than having to be paid back in one go. The defining feature of is the structured repayment schedule, where borrowers steadily pay back the principal amount and interest through a series of scheduled installments, as opposed to a lump-sum payment requirement.

With Dime Alley, you can borrow money today and choose to repay over 1 to 60 months in monthly installments, whether you wish to borrow $500, $1,000, $5,000 or more. Enquire about:

• 30 day loans
• 90 day loans
• 3,6,9,12,24,48 and 60 month loans

How Do Installment Loans Work?

Installment loans work by allowing customers to borrow a fixed sum over several months, and pay it back over time, usually in equal installments. This approach may be preferred to other forms of fast loans, such as payday loans which only last a few weeks.

Some customers may prefer to receive the money upfront to pay for an emergency and have several months to pay it off, with the option to repay early if they would like to.

Receive a fixed sum upfront – You will be able to borrow an amount based on factors such as your income, credit score and affordability – and you can receive money immediately to pay for any important purchases, personal reasons or emergencies.

Fixed interest rate – You know exactly how much you are paying each month and at what rate, with no surprises or changes to the rate during the loan term. This can give you peace of mind and therefore you know exactly how much to budget for.

Early repayment – You can repay early at any time and often save money because less interest is being accrued overall.

Key Features

How Much Will an Installment Loan Cost Me?

Good credit: Borrow $30,000 at 10.99% APR for 60 months. Interest to pay: $652.12 per month. Total to repay: $36,652.12

Bad credit: Borrow $1,000 with 100% APR over 12 months. Total interest: $620 per month. Total repayment: $1,620

Advantages of Installment Loans:

1. Convenience: One of the primary benefits of online installment loans is the convenience they offer. Borrowers can apply for these loans from the comfort of their homes or anywhere with internet access, saving time and effort compared to traditional in-person loan applications.
2. Accessibility: Online lenders often have more lenient credit requirements, making it easier for individuals to qualify for installment loans with bad credit. This accessibility can be a lifeline for those who might not have access to traditional financing.
3. Quick Approval: These loans typically have a faster approval process than traditional banks or credit unions. Many online lenders provide instant approval decisions, allowing borrowers to access funds quickly when needed.
4. Transparency: Online lenders often provide detailed information about loan terms, interest rates, and fees on their websites. This transparency helps borrowers make informed decisions and avoid hidden costs.
5. Flexible Repayment Options: Borrowers can often choose from a range of repayment terms to find a schedule that fits their budget. This flexibility can make it easier to manage monthly payments.

Disadvantages of Installment Loans:

1. High Interest Rates: For those borrowers with poor credit, these products may come with high interest rates (around 200% to 400% APR for payday products). Over time, these high rates can lead to substantial interest costs, making the loan more expensive.
2. Potential for Predatory Lenders: The online lending space is not immune to predatory lenders or scams. Borrowers should exercise caution and thoroughly research lenders to avoid falling victim to fraudulent schemes.
3. Debt Cycle: Easy online access to installment loans can tempt individuals into a cycle of debt. Borrowers may take out multiple loans without considering their ability to repay them, leading to a cycle of borrowing and indebtedness.
4. Limited Regulatory Oversight: Online lending is subject to fewer regulations than traditional financial institutions. This lack of oversight can make it challenging for borrowers to address issues or disputes with lenders.
5. Impulsive Borrowing: The convenience of online applications can lead to impulsive borrowing decisions. Borrowers should carefully assess their financial needs and repayment capacity before taking out an installment loan.

Can I Get Installment Loans with Bad Credit and Guaranteed Approval?

Yes, DimeAlley offers bad credit loans online so even if you have been turned down elsewhere, we have a number of options available for you. To be eligible, you must be in regular employment and have a stable income and you are committed to repaying your loan on time.

Whilst traditional unsecured and payday loans will need you to have a good credit score, our installment lenders are designed to work with people who have bad credit and very poor credit too.

By making multiple repayments, it allows you to spread the costs over time which can be more suitable for those with bad credit scores. Plus, we have a number of options including secured and title loans which allow you to leverage any collateral or assets you have to borrow money.

It is possible to get guaranteed $3,000 installment loans for bad credit, since Dime Alley works with such a large panel of lenders that we are always able to give you some kind of loan offer or decision. The best products will be unsecured and carry low rates starting from 6% APR, with a number of other options such as payday loans, credit unions or secured loans for those with bad credit.

A loan however is never fully guaranteed, since this will always be subject to final checks, which could involve a phone call to confirm some information, proof of income via a pay stub or bank statement and sometimes proof of your employment.

Can I Apply for Installment Loans With No Credit Checks?

Yes. DimeAlley offers no credit check installment loans. This is because we can connect you with loan products that involve using collateral or assets to be eligible, such secured loans.

For no credit check loans, you will still need to be employed either full-time or part-time and have a regular income to show that you can afford to repay your loan without falling into financial difficulty.

What Are Types of Installment Loans?

Unsecured Installment Loans

Your installment loan is not secured against a property or other collateral such as your car (with title loans). Your eligibility is based on income, employment and credit score and if you cannot repay, it will negatively impact your credit score, but you will not lose any valuable assets.

Personal Installment Loans 

For personal expenses and purchases including home improvements, buying a new car, debt consolidation, weddings, holidays, parties and more – this is for you as an individual borrower and not on behalf of your business or similar.

Secured Installment Loans 

This is a loan repaid over several months or years which is secured against a valuable asset that you own, such as a car or home. You will be able to borrow a percentage of the asset’s value (e.g 25%) and if you struggle to repay, your lender may be able to stake a claim in the asset or repossess it.

What Are Online Installment Loans Used For?

1. Emergency Expenses: Installment loans can help cover unexpected medical bills, car repairs, home repairs, or other urgent financial needs. See also emergency loans for bad credit.
2. Debt Consolidation: This is where you borrow large sums to consolidate multiple high-interest debts, such as credit card balances or payday loans, into a single, more manageable loan with a lower interest rate.
3. Home Improvements: Some borrowers use installment loans to fund home improvement projects, such as renovating a kitchen, bathroom, repairing a roof or upgrading their living space.
4. Auto Financing: This can be used to purchase a new car or vehicle or to cover auto repair costs.
5. Education Expenses: Students or parents may use them to pay for education-related expenses, including tuition, textbooks, or other education-related costs.
6. Travel: Borrowers may decide to borrow to pay for vacations, travel expenses, or family trips.
7. Weddings: Planning a wedding can be expensive, and some individuals use them to help cover the costs of wedding venues, catering, or other wedding-related expenses.
8. Business Capital: Entrepreneurs and small business owners may use long term loans to fund their businesses, purchase inventory, or cover operating expenses.
9. Moving Expenses: When relocating for work or personal reasons, individuals may use loans repaid in installments to cover moving expenses, such as hiring movers or renting a new place.
10. Legal or Attorney Fees: In certain legal situations, individuals may require financial assistance to pay for legal representation or court-related fees.
11. Medical and Dental Costs: They are often used to cover the cost of elective medical or dental procedures, especially when insurance doesn’t fully cover them.

What Information Do I Need To Qualify For Installment Loans?

The information you need to apply includes:

• Name
• Date of Birth
• Address
• Contact details
• Employment and income
• Bank details
• Social security number (SSN)
• Email address and US cell number

What is The Criteria For Installment Loans Online?

• Over 18 years old
• Hold American citizenship
• Have a social security number
• Have a checking account for us to deposit your funds into
• Have a minimum monthly income of $800 or $500 if you work part-time
• Are steadily employed

Where Can I Apply For Installment Loans Near Me?

Dime Alley offers installment loans for bad credit across the the US including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

With our loans connection service, we will match your loan enquiry with the best US lender based on your location, income, credit score and more, offering you the most competitive rates and the best chance of being approved.

We will also try to allocate the best type of product for you, whether it is an unsecured product, or secured against your car or home, or completely alternative products from apps, credit unions, stores, banks, credit cards and more.

Whatever product we suggest, we will aim to process your loan request as fast as possible, with a quick decision and funds available within 24 hours or less.

What is the Difference Between Payday Loans and Installment Loans?

The main difference is that payday loans are often used for just 2 to 4 weeks for emergencies and repaid on the borrower’s next pay date from work. Payday products have strict regulation, including state price caps to ensure that they are not misused.

By comparison, loans repaid over installments are designed for borrowing larger amounts and spreading repayment over several months or years. So this could be less for an emergency but rather a big purchase or event, perhaps for a wedding, consolidating some existing debts or paying for a college education.

Steps to Spot Predatory Lending Practices

Predatory lenders often target vulnerable borrowers with deceptive or unfair terms that can lead to a cycle of debt. 

Here are some steps to recognize and steer clear of predatory lending practices:

1. Research the Lender: Start by researching the lender thoroughly. Look for online reviews, ratings, and customer feedback. Legitimate lenders should have a positive reputation, while predatory lenders may have numerous complaints or negative reviews.
2. Check for Licensing and Registration: Verify that the lender is licensed and registered to operate in your state. State regulations vary, and a legitimate lender should comply with local laws.
3. Examine Interest Rates: Predatory lenders often charge excessively high-interest rates, often well above the limits set by state regulations. Compare the interest rates offered by different lenders to ensure they are competitive and reasonable.
4. Understand the Terms and Fees: Carefully review the loan agreement, including the terms and fees. Look out for hidden fees, prepayment penalties, and balloon payments, which can make the loan more expensive than it initially appears.
5. Avoid High Fees: Predatory lenders may charge excessive fees for loan origination, late payments, or other services. Be aware of all fees associated with the loan and avoid lenders that impose unreasonable charges.
6. Watch for Pressure Sales Tactics: Be cautious if the lender uses aggressive or high-pressure sales tactics to push you into taking out a loan. Legitimate lenders should provide information and allow you to make an informed decision.
7. Read the Fine Print: Carefully read and understand the loan agreement, including the terms and conditions. Pay attention to the repayment schedule, interest rate, and any clauses that may impact your ability to repay.
8. Report Suspected Predatory Lenders: If you encounter a lender engaging in predatory practices, report them to your state’s attorney general’s office, the Consumer Financial Protection Bureau (CFPB), or other relevant authorities.