You can apply for payday installment loans online and get approved in hours. Using an online aggregator or facilitator will speed up the process further as you can use just one application for multiple lenders. Receive quotes, compare them and choose the best proposition. It is practically possible to get approved for payday installment loans in an hour. You could get the money credited into your account in another hour or so. This expedited approach works well for all borrowers who need some cash urgently. However, the fast process also fuels mistakes. You should not be in any haste while applying for payday installation loans.
- Planning and preparation is always essential for effective management of finance. You must not take up a debt that can become unmanageable. Hence, you should first assess your own affordability. For a moment, do not consider how much loan amount the lenders are offering you. Forget the kind of money you can be eligible for. Instead, assess your income and expenses. You should know how much exactly you can spare every month to repay the loan. This is the installment you can afford. Some borrowers imagine they can cut corners and have more money to spare. This is easier said than done. You do not want to be pressed for money when you have an installment to pay. If a payday loan is being repaid in full from the next paycheck, then it is only a matter of one month. When you have payday installment loans spanning months, you should seriously consider the effect of the new monthly liability on your budget and overall financial condition.
- Do not compare lenders solely on the basis of the rate of interest. This is the most common mistake made by borrowers. People get multiple quotes, shortlist those lenders that are willing to approve the amount sought, compare the rates of interest and decide. There is more to a loan than the rate. For instance, a lender may have a processing fee. The late payment or fine charged by a lender may be exorbitantly higher than others. Some lenders may be more lenient with their repayment terms. These terms of agreement are important, not as much as the interest but enough to have a financial impact. Do not pay processing fees for payday installment loans. All lenders have fines or penalties for late payment or missing an installment so you have to endure that if you default.
- Compare different repayment periods, see how the installments are being affected and then choose a term. Do not choose a repayment term randomly. Some borrowers go for the maximum term, since that reduces the monthly installment to its minimum possible figure. This is unwise as the cumulated interest is at its highest. Some borrowers prefer a shorter term, presuming that getting over with the payday installment loans as soon as possible is more relieving. While this is true, the increased monthly installment can take a toll. Always choose a pragmatic repayment term on the basis of your affordability.