Using an Online Installment Loan for a Smart Purchase
One day, as he was looking for a good used car to buy, he found an ad that piqued his interest. The Monte Carlo needed some work, but he has the expertise to make these types of repairs. The owner was selling it for a low price because she was moving out of state and didn’t want to wait for a better offer. There was only one problem. He didn’t have enough money. An application at a website like Blue Trust Loans would be his next step.
People usually apply for an installment loan because they have a need for emergency funds and do not have the money on hand. They don’t have a credit card and can’t get a loan from their bank or credit union because their credit score is low or they don’t have any credit history. However, an online installment loan can be used for other purposes, although it shouldn’t be used for something frivolous because the interest rates are relatively high.
Consider the person planning to buy the Monte Carlo. The owner wants $4,000 and the prospective buyer only has $2,800. This person gets a weekly paycheck of about $500 after taxes. By cutting expenses to the bare minimum, a $1,200 loan could be paid back quickly. This cuts the finance charges significantly because there are no prepayment penalties. It technically costs the buyer some extra money to purchase the car, but the deal is such a good one that he comes out ahead.
This type of loan can have additional advantages for the person who wants this car. For example, he may value his privacy a great deal and not want to take out a loan at his hometown bank. That’s especially true if he lives in a small community where there is little anonymity.
Another advantage is the quick process. Typically an installment loan is approved within a day, although some lenders require verification of income. Banks and credit unions tend to take much longer to approve loan applications. There also is no need to drive anywhere, since everything is completed online.