Your 2022 Installment Loan FAQs Answered

There are many different types of loans. After auto and home loans, personal, emergency, payday, and installment loans are the ones that most of us are familiar with. These four types of loans may be used for similar purposes, but one is often better than the others. 

Here are some of the most frequently asked questions and answers about installment loans.

What is an Installment Loan? 

An installment loan is also sometimes called an installment credit, a short-term loan, a personal loan, a same-day loan, or an emergency loan. But one thing remains the same: the format of the loan matters more than the name. 

Installment loans are short-term loans that offer lump sums you repay over time in chunks or installments.

How is an Installment Loan Different from a Payday Loan? 

Installment loans allow you to pay off your balance over a longer period than payday loans. For example, the average payday loan comes with a repayment period of two weeks. Often, you can roll over the loan to buy yourself more time, but each rollover comes with fees. 

And as these fees accumulate, it gets harder and harder to pay off the original loan. The average installment loan, on the other hand, will give you up to ten months to repay your debt. This is a much more flexible format that reduces the pressure and eliminates the roll-over fees.  

What Can I Use an Installment Loan for? 

You can use an installment loan to catch up on anything you are behind on. Many people apply for installment loans to catch up on their rent or mortgage, pay overdue utility bills, cover an unexpected medical expense or another emergency, or fund last-minute car repairs. 

You may also use your installment loan to buy groceries, pay overdue taxes, or fund an emergency home repair. These are some of the most common reasons for borrowers to take out installment loans. However, how you spend the money is up to you.

What are the Requirements to Apply for an Installment Loan? 

Installment loans will have different requirements based on the lender. At Spotloan, as an example, the first requirement is that you must be 18 years old or over to apply. The second is that you’ll have to provide a valid email address and phone number so that we can contact you. 

The last requirement is that you have a job or another regular source of income and a checking or savings account to which we can send your funds if you are approved. 

Can I Get an Installment Loan if I Have Bad Credit? 

A low credit score doesn’t have to mean you’re out of options.  Unfortunately, it can often feel that way. Americans with bad credit spend as much as $9 billion on payday loans every year. But payday loans don’t give you much time for repayment. 

And the roll-over fees you incur after your two weeks are up will add to the total, while paying them off doesn’t reduce the total. This can leave borrowers stuck in a challenging cycle. Thankfully, installment loans are also available to those with sub-optimal credit. 

Since its establishment in 2012, Spotloan has provided over 675,000 loans to hundreds of thousands of Americans in need. In Spotloan testimonials, borrowers frequently cite our installment loan as a reputable, easy, and convenient alternative to other loans. We wanted borrowers with bad credit to have a better option, so we created one. 

How Long Does the Spotloan Application and Approval Take? 

The entire Spotloan application process happens online. Most borrowers start and finish their applications in about ten minutes or less. That’s less time than it takes most of us to sip our coffee in the morning or shower before bed at night. 

As soon as your application is complete, in most cases you’ll know within one minute if you’re approved. We will also ensure that you receive the funds quickly. In certain circumstances, you may receive your funds on the same business day. 

How Much Can I Borrow? 

With Spotloan, you can borrow as much as you need, up to $800. Our loans start at $300 and move up in hundred dollar increments from there. Once you borrow and successfully repay your Spotloan, you can easily borrow again if you need to.