High Risk Loan LendersThe main reason for a 12 month installment loan from online lenders is often due to poor credit history. Traditional lenders such as banks will decline your request if you do not have good credit above 720 or a sufficiently high income. High risk loan lenders are more willing to finance borrowers with sub-standard financial records such as providing installment loans for low income, previous bankruptcy, low FICO credit score etc. On the other hand, online direct lenders provide fast loans for borrowers who worry about their credit score. It is easy to get approved for a loan with 12 monthly payments as long as you have a stable job or income - they want you to be able to pay them on time regularly!
Legit Installment Loan LendersOf course, the downside to taking installment loans is the higher interest rates. High risk loans can be costly for the lenders, as the borrowers may end up defaulting and cannot pay them back. To offset the higher costs involved in debt collection, the loan rates for $5000 installment loans have to be increased accordingly. Every monthly payment must be on time, or there may be additional penalty fees. Finally, not all legitimate loan lenders can give $5000 installment loans, some may have a lower lending limit and it also depends on how much you earn per month. Since this is not exactly a small amount of cash, it will be prudent to plan your budget carefully and see if you can conservatively afford the loan fees. Borrowing money should be reserved for real and urgent situations.
If you have good friends or relatives that are doing well financially, it will be safer and cheaper to ask for a personal loan whether interest free or not. Payment dates and terms are much more flexible and there is no risk of further damage to your credit score. Of course, the main risk is ruining your relationship when you deliberately choose not to pay back because of the lack of legal obligations.
Long Term Installment Loans For $5000Most online lenders provide only short term loans for 30 days. These are generally small unsecured loans that can be paid off completely at the end of the month or when you receive your paycheck. It is easy to get approved for a monthly payment cash advance from these companies but the maximum amount you can borrow is quite limited. So make sure the lender can provide long term monthly installment loans for whatever amount you need urgently.
This is a good tip to help you save money and avoid running short to pay the monthly fees. Once you receive your latest paycheck, simply put aside money that are reserved for bills, loan payments etc. Then plan your expenditure around the remaining funds. This way you can make sure to afford the loan rates on loans with monthly payments.