Installment loans are great for emergencies, home improvement projects, and purchasing a new car. They are also beneficial because they come with a fixed interest rate, which is much better than a variable rate debt. Furthermore, they allow the borrower to select how long they wish to pay back the loan. This way, they can plan their repayments accordingly.
Easy to get approved
If you have bad credit and are in need of cash fast, it’s easy to get approved for an installment loan without a bank account. Many online lending networks partner with lenders who specialize in bad credit loans. These networks direct you to the lender’s website, where you can apply and complete loan paperwork. If approved, the lender will electronically transfer the funds to your account, which you can access within one business day.
One of the best ways to get approved for an installment loan without a bank account is through MoneyGram, an online network that has a vast network of lenders. With a large network of lenders, MoneyGram loans are often processed quickly and deposited in your account within one or two business days. This option is popular with those who need fast funding and don’t want to be bothered with the hassle of a bank account. Most moneyGram lenders are flexible when it comes to how you use your cash and will only ask for timely repayment of the loan.
High rates of interest
If you have no bank account but need a loan, it is wise to shop around before applying for financing. While you might find a lender willing to offer you a short-term installment loan without a credit check, this is usually not a good idea. These lenders are unable to evaluate your credit worthiness and may not offer you the best interest rate. A better choice is to turn to mainstream lenders. These banks are likely to offer you a better interest rate and a longer repayment term.
Although these online loans can provide quick financial help, they often come with high interest rates. Payday loans, for example, can cost anywhere from 391% to 600% in interest. Thankfully, some states have set interest rate ceilings. For example, in 18 states, the interest rate on a $300 loan is limited to 36%. Without a ceiling on interest rates, borrowers could be forced to pay as much as 663% on a $300 loan.
Applying online
While most traditional lenders require that borrowers have an active bank account to receive loan funds, it is possible to apply for a loan without one if you have a strong credit history. In such cases, the lender will run a credit check to ensure that you have the ability to repay the loan. The lender will also verify your income and background to make sure that you will be able to make your payments.
When applying for a payday loan, you should understand all fees and terms before making the final decision. Typically, a lender will charge an origination fee of around $10 to $15 per hundred dollars borrowed. There may also be a renewal fee that ranges from 5% to 15% of the loan amount. It is important to remember that payday loans can be extremely costly and you should avoid using them if possible.
