Before you apply for an installment loan, be sure that you can afford to pay back what you borrow. Missing payments is a sure-fire way to tank your credit score. Use our personal loan calculator to see the true cost of an installment loan, considering interest.
If your budget shows that you can handle another monthly payment, then you should:
Check your credit
To know what you might qualify for, you need to check your credit score. Many lenders require a good credit score (670+) before they’ll offer you an installment loan. It’s possible to qualify with fair or poor credit, but high interest rates may make it unaffordable to borrow.
Prequalify with multiple lenders and compare
Most lenders allow you to prequalify for a personal loan. This is a quick way to check your eligibility without taking a ding to your credit. While prequalification doesn’t guarantee approval, this process can help you decide whether a lender is worth pursuing.
Formally apply, accept your offer and enter repayment
Once you’ve compared offers (more on that below) and chosen the best installment loan for you, it’s time to apply.
Loan applications are similar across lenders. You’ll need to provide basics like your name and date of birth. The lender will also ask for financial information like your annual income. You may need to provide bank statements, and you’ll almost certainly need to provide a government-issued ID.
When the lender approves you, you’ll sign your loan documents. Then, it will disburse (or send you) your loan. About 30 to 45 days after you get your installment loan, you’ll begin paying it back in equal monthly payments.