Non-traditional lenders are known for lenient guidelines for loan approvals. Short applications can be completed over the telephone or online, needed documents can be scanned and emailed, and agreements can be electronically signed by the customer. The quick process results in a loan that is typically available on the next business day.
There Are Some Requirements
Minimum requirements for loan approval varies from company to company so it is smart to compare them before filling out an application. Blue Trust Loans, for example, requires customers be at least eighteen years of age. They also have to make a specific amount of money every month, which can be either through employment or a fixed income. A valid social security number and an active checking account round out the requirements.
Other lenders may require customers to be twenty-one years of age. Some will not accept a fixed income as a source of money and require at least part-time employment. Many will not consider approving a loan for active military personnel. That risk to too high at any interest rate. Those who reside in certain states are not eligible to apply with some lenders.
Read Terms Carefully
When seeking an installment loan from any lender, be sure to read terms and conditions carefully. It is imperative that customers fully understand the total costs that are added over and above the original amount of the loan. Interest rates will be very high, as will any fees for late payments. The loan can end up costing four times the amount of the principal.
How to Avoid the Situation
The unexpected will happen to everyone at some point. The best thing to do is prepare for an emergency before one presents itself. Devising a realistic budget and following it can leave money to put into a savings account. The amount does not have to be high because it will build up over time.
Once the money is in the account, leave it there until a real emergency occurs. Learning the difference between a need and a desire will be helpful at this point. Car repairs, for example, are the most common reason people need fast cash. That is a need. A night on the town is a desire, regardless of how long it has been since the last night on the town.