I Need Money Now!

Online installment loans with low interest rates are generally not available to anyone with bad credit.  To make matters worse, some of the typical ways to borrow money fast are eliminated when APR is a factor.  That said, you will have plenty of options, assuming your credit score is over 700.  In this article, I’d like to show you some places to look, places to avoid, and what you can expect to find in your search for a personal loan with installment payments. 

Stay Away From These Lenders

Car Title Lenders:  I actually know a person that has done this.  His credit was bad, and he needed money immediately.  He borrowed $500, putting up the deed to his automobile in the process.  He was approved, as guaranteed approval is one of the common themes from these companies.  His interest rate?  304.17%.  That’s obscene for a one year loan. 

Bad Credit Borrowers:  If low interest rates are the main focus for your monthly payment personal loan, you might want to avoid bad credit lending specialists.  Since they cater to those with scores generally under 650, the interest rates are not competitive for most.

Look for These Lenders

Reputable, National Banks:  When you need to borrow money with low monthly payments and you have good credit, national online bank lenders are a great option to keep in mind.  You will get competitive, lower interest rates, for them most part just over prime.  This will allow you to have lower monthly payments and decrease the finance charges.

Home Equity Lenders:  If you are a homeowner, this can be a great option.  You’ll generally find great fixed rates and will get approval in minutes, assuming your score is up to par.  Of course, there is a fair amount of risk with this type of personal loan or any other, so you’ll have to use appropriate caution.

High Rated Lenders:  Lender ratings and reviews are available for almost any bank online or off.  You will find that reviews and ratings can be manipulated, especially is someone is going for affiliate income, but for the most part, it’s a good way to find out if the online monthly installment loans with low interest rates are from a reputable, financially solid lending institution.

Freestanding Banks or Credit Unions:  Okay, this isn’t an online option, but it’s generally one that should be explored.  If you have a checking account, savings account, or other form of account through a local bank, why not try them when you need to borrow some money?  You’ll get a very competitive APR and you’ll continue to build a relationship with a lender, which can help you get approved quicker.

Common Sense

You must use common sense whenever you apply for online installment loans, low interest rates or not.  Each day, many people go out seeking to borrow funds to pay off bills, buy a vehicle, or just about anything else you can imagine.  Common sense must prevail.  Listed below are some pitfalls to avoid as you search for a good online lender.

Variable Rates:  Probably not a good idea, unless you are certain you will pay off the note very quickly.  The rates might be low today, but not guaranteed.  If so, what’s to stop them from increasing in the future?

Filling Out Applications:  It’s not that uncommon for people to assume they are just filling in contact info and basics for online lenders, only to find they have submitted an application for approval.  Be careful.  Contact info is one thing, but unless you are actually applying to borrow the money from them, there’s no reason to give your banking info, social security number, employment history, etc.

Read Terms and Conditions:  The online world is famous for having a nice little check box that says you have read the terms and conditions and agree to them all, but few actually read them.  What did you just agree to?  You better know the answer to that.

As you can see, online installment loans with low interest rates are available, but you must use caution.  

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