If You Have Lost Your Job, Installment Loans Online May Help You

Installment loans are very interesting loan constructions, whereby you essentially pay back the loan over a period of time. Usually, they are available in amounts of between $500 and $1,500. The repayment period can be over a number of weeks, or over a number of months. This means that, as a borrower, you have quite a bit of time to pay it back.

Unemployment and Installment Loans

Interestingly, installment loans are one of the few constructions that are available for unemployed people. This is because a lender will assess your employment history and determine whether or not it is likely that you will soon find new employment. You may, for instance, have been provided with some sort of severance package that will guarantee them that you will be able to make repayments. The reality is that millions of people in this country are unemployed and need cash fast, so it is no surprise that the financial market is responding to this.

Who Can Apply for Installment Loans Online?

Anyone is able to apply for installment loans online, but you do need to meet a number of eligibility criteria to be accepted. Each lender will have their own criteria, although some common ones include:

• Being employed or having been employed in the past six months.
• Being at least 18 years old, or 21 in some states.
• Having an active bank account.
• Being a legal and permanent resident of this country.

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The Benefits of Online Installment Loans

There are a number of clear benefits to these types of loans. The biggest one is clearly that you are given some time to actually repay it. This means that some of the financial pressure is taken away from you, giving you some breathing space. This is an opportunity for you to consolidate any other debt you may have and work yourself out of any financial difficulties. If you have recently been made unemployed, this can be a true lifesaver. For some people, it has even been the ticket to new employment, for which they perhaps needed new clothes and a vehicle to drive.

We are said to be out of the recessions, which means that unemployment isn’t rising anymore. However, many people still find themselves out of a job and with significant financial needs. Covering the cost of living is now beyond the means of many people, and this situation is very hard to get out of. Thanks to an installment loan, however, people in this situation can loosen their belt for a short period of time, ensuring they have the opportunity and even the motivation to get themselves out of the situation they are in.

Applying for any type of financial product is a decision not to be taken lightly. Making it through a difficult financial period without turning to loans is always a better idea than borrowing money. However, if you are in a situation where you simply cannot make ends meet anymore, then an installment loan could be of benefit.

Guest Author: Lolita Di