Borrowing money from a non-traditional lender is easier and faster than seeking a loan from a bank or credit union. Applications can be submitted and processed seven days a week, and approval percentages are much higher than banks. The money can be deposited into a bank account as soon as one business day after approval.
Those belonging to a credit union may have an alternative option to a high-interest installment loan. During business days, a credit union member may be able to get a small personal loan quickly at a much lower interest rate. Members will want to try that first.
Approval for Non-Traditional Loans
Due to high approval rates, most people assume if they apply for an installment loan they will be automatically approved. That is not the case. Non-traditional lenders do have more freedom regarding approvals and work with people who have experienced credit problems in the past, but minimum qualifications do apply. These will vary, so search for qualifications on every lender website.
Those who do not meet minimum qualifications will be denied an installment loan. Applicants must be at least eighteen years of age with a verifiable source of income that is directly deposited into an active bank account. Total income is a deciding factor for approval. People involved in bankruptcy proceedings will not be considered for a loan. A credit check is completed, but the major credit rating companies are not utilized.
In addition to minimum qualifications, there are automatic exclusions for specific people. Loan offers are not extended by Blue Trust Loans to active military personnel, their spouses, or their dependents. Business is also not conducted in eleven of the United States. All states are presented on the website. Residents of those states must seek an installment loan from another non-traditional lender.
Review Terms and Conditions Carefully
It is imperative that people read and understand all the terms and conditions of taking out an installment loan with any lender. The agreement will include the original amount of the loan, the interest rate charged, and the total amount to be repaid to the lender. Let that information sink in before signing. Penalties and late payment fees are also clearly outlined.