When you’re facing a very troubling financial situation that requires you make a payment soon, usually your only thought is how you can get cash quickly even though your paycheck may not come until days or weeks later. Such a situation is not uncommon across the US, and Idaho residents also go through situations where unforeseen difficulties can wipe out their savings. What’s most difficult for them is that solutions for getting cash quick when facing these problems are often very limited, and if friends or family can’t help or your bank doesn’t offer any personal loans that you qualify for, you might wonder what other recourse you have. Idaho is one of many states where installment loans are offered, and they come with several benefits that other loans don’t have.
Benefit 1: Installment Loan Funds Can Be Used for Practically Any Purpose
Aside from credit cards, most loans require that you disclose your reasons for applying for them, or state your intended use of the loan funds in the application paperwork. In some cases, even personal bank loans are limited in how or where you can spend the funds. But with installment loans, there is no restriction on what you can use them for. You could use them to pay for court-ordered payments such as traffic tickets or child support use than to pay the plumber or HVAC technician for home repairs, or even use them to buy a new gift for a family member or pay for a plane ticket. The approval process for installment loans doesn’t require you to state what you plan to use them for; they only require that you submit proof that you can make payments for them.
Benefit 2: Installment Loans Are Great For Those Who Need Smaller Loans
One of the problems with many banks is that their personal loans usually have high minimum amounts you can borrow such as $10,000, although credit cards do allow for lower amounts, they are technically lines of credit and not traditional loans. Since installment loans are generally intended for smaller costs that don’t require funding as high as $10,000, you can borrow anywhere between $150-$1,000 without needing to go through all the long-form application channels. Installment loans Idaho are capped at $1,000, so if you do need to get short-term financing with higher amounts you can borrow, you may want to look into other options such as an auto title loan. But for those who only need $1,000 or less, installment loans are usually the way to go because you can get your cash quickly with them including the same day in some cases.
Benefit 3: Installment Loans Can Be Paid Off Early With Absolutely No Penalty
Many loans such as auto loans and even mortgages and business loans impose penalties and fees on borrowers if they pay their loans off too early. That’s because lending money is a business and lenders want to make sure they can get paid as much of the interest as possible that they would make over a loan period. The credit bureaus want to make sure that people don’t artificially bump up their FICO scores by taking out loans they don’t need and paying them off in ways that may not demonstrate real financial responsibility. But since installment loans are only intended to be used for short-term costs and payments are not reported to credit bureaus, you can pay them off as soon as you wish. Even if you had an installment loan that wasn’t scheduled to be fully repaid for 6 months, if your financial situation improved to the point where you wanted to pay it off completely in one month, you can do that without paying any penalties.
Benefit 4: Installment Loans Require No Collateral
Sometimes you need to be willing to offer up personal property as collateral in order to borrow money, especially if your credit score isn’t good enough to qualify you for an unsecured or non-collateral loan. Well unlike pawn loans and title loans which do require collateral, installment loans are unsecured and don’t require you to give up any personal items or allow the lender to put a lien on your home or vehicle. So long as you have verified your sources of reliable income and shown that you have an active checking account, those are sufficient enough to not require any collateral from the lender. You do still need to know the consequences of what could happen should you fail to repay your installment loan at the deadlines, but usually it will not result in the seizure of any personal assets.