Warning: Late repayment can cause you serious money problems. For help go to moneyadviceservice.org.uk
Rates from 278% APR to max 1576% APR. Minimum Loan Length is 3 months. Max Loan Length is 6 months. Representative 305.9% APR. Representative example: £400 borrowed for 90 days. Total amount repayable is £559.68 in 3 monthly instalments of £186.56. Interest charged is £159.68, interest rate 161.9% (variable). interest rate 161.9% (APR variable). We are a credit broker not a Lender.
An installment loan is a loan that is paid back in a set of installments scheduled over a pre-defined period of time. These include many different types of loans, such as personal loans, mortgages, and auto loans. Smaller, short-term installment loans are offered in the form of payday loans.
Payday loans are short-term loans that are often repaid in one payment, on your next payday. Installment loans are paid in a series of payments spread across a period of time. Installment loans tend to be for larger amounts, which is why they’re repaid over a longer time period.
However, payday loans can also be installment loans. Some payday lenders will offer guaranteed loans that can be repaid over a period of time in installments. You can get a payday loan online.
Repayment periods for payday loans repaid in installments are generally 3-12 months, versus larger personal loans or auto loans which can have repayment periods of 5 years, 10 years, or even more. This is because payday loans are for smaller amounts, generally £100 to £2,000.
It’s worth remembering that the longer your repayment period is, the more you end up paying in interest.
People who need installment loans are in need of quick cash for a variety of reasons, such as:
New or unexpected bills.
Other unforeseen, necessary expenses.
Often times, these unforeseen expenses are larger expenses and the person in need doesn’t have enough disposable income to repay the loan in one month, which is why they opt for an installment loan over a payday loan that is repaid the following month.
It is possible to get a short-term installment loan. There are lenders that offer smaller loans, typically ranging up to £1,000, sometimes up to £2,000, to be paid back in monthly installments, typically ranging from 3-12 months. These loans are a cross between payday loans and personal loans. It’s important to note that paying a short-term loan in installments rather than all at once typically means a more expensive loan.
While a credit card with a minimum monthly payment may be similar to an installment loan, there are some important distinctions. A credit card is a line of credit which you can borrow against. The borrower can choose to borrow £0, the entirety of their line of credit, or any amount in between. An installment loan gives the borrower a set amount of money all at once.
The benefits of an installment loan, as compared to short-term loans, are:
They’re available in larger amounts of up to £10,000 or more.
They can be repaid over a longer period of time as payments are broken up into installments for smaller monthly payments.
They sometimes, though not always, offer lower interest rates.
In exchange for smaller, more manageable payments broken up into monthly installments, installment loans can end up costing the borrower more in the long-run because they are paying interest over a longer period of time.
While installment loans sometimes offer a lower interest rate (if borrowed from a traditional lender), they are paid over a longer time period. This means that the overall cost of the loan can be equal or greater than the cost of a short-term or payday loan, depending on the terms.
In order to be eligible for an installment loan, you must be:
At least 18 years of age.
A legal resident of the UK.
The factors that impact your application will vary depending on the lender, however all will consider the following materials:
Your credit score and credit history.
Your employment history.
Your current salary.
How long you’ve been with your current employer.
In order to apply for an installment loan, you’ll need to submit the following:
A valid address.
You will usually need to have a bank account as well.
Here are examples of documents you can use as valid proof of identity and address. Please note that this list is not exhaustive.
|Document||Is it valid as proof of idenitity?||Is it valid as proof of address?|
|Current UK driving license (old and new)||Yes||No|
|Full form UK birth certificate||Yes||No|
|Non-expired UK passport||Yes||Yes|
|Utility bills (issued within last 3 months)||No||Yes|
|Benefit book/letter||Yes||No||Bank passbook/statement, Credit Union passbook||No||Yes|
|Mortgage Certificate||No||Yes||Land registation certificate||No||Yes|
|Rent card / tenancy deed / tennacy agreement for the current financial year||No||Yes||National ID card||Yes||No|
|Valid passport of a UN recognised country||Yes||No||LAC tax receipt||No||Yes|
|Electorol register entry||Yes||Yes|
The following are considered valid proof of income. Please note that this list is not exhaustive.
A statement of pay from a VAT registered employer.
A valid and recent bank account statement, preferably within the past 3 months.
Relevant bank deposit statements for pensions, grants, benefits, etc.
A statement of pay from investments, rental properties, or government benefits.
As long as you are a legal UK resident, there are lenders who will work with you. You do not have to be a citizen.
Most lenders will work with anyone who is a legal UK resident (not necessarily a citizen), as long as you can meet their other conditions.
At Viva Loans, you can apply for a short-term or payday installment loan quickly and easily.
We are not a lender. Rather, once you’ve submitted your application, we will hand pick a number of lenders who might be interested in lending to you.
If you are approved by one of these lenders, the loan will be deposited into your account almost instantly (usually under an hour).
The whole process is very easy and can be done in one day.
Unlike other alternative loans, such as payday loans, larger installment loans typically rely on your credit score. Your loan terms, such as the APR, will also depend on your credit score. Therefore, it’s important to have at least a decent credit score in order to secure an installment loan with favorable terms. While people with bad credit may still qualify for installment loans from alternative lenders, it will be more difficult.
That being said, there are payday loans that are offered as installment loans, and those will rely less on your credit history than a personal loan from a traditional lender.
If you do not repay them on time, it can significantly decrease your credit score. However, if you make on time payments and are able to pay off your loan responsibly, installment loans are a great way to build or rebuild credit.
Sometimes. It depends on the lender.
However, often times there are fees associated with paying off your installment loan early. For that reason, people who are looking to borrow and pay off a loan over a short period of time might want to consider an alternative, such as a payday loan.
This varies greatly.
Because installment loan is an umbrella term that covers everything from personal loans to mortgages, they can range from £1,000 all the way up to £50,000 or more.
Smaller loans of £50 or £100, however, are typically not offered in installments. Installment loans tend to start at closer to £500.
Repayment periods also vary greatly, but they are not short term. For payday loans, they range from 3-12 months. Repayment plans for larger personal loans start at 12 months. They can extend up to 5, 10, even 20 years or more depending on the amount of the loan.
It is important to shop around and compare lenders with installment loans, as terms can vary greatly. You’ll want to consider all your options, from traditional banks to credit unions to alternative lenders. Compare the terms, such as the APR and repayment period, and decide from there.
Here at Viva Loans, we can review your application and pair you with the best payday loan lender available.
Yes, but you may not be approved.
Installment loans from traditional lenders do depend on your credit score. There are lenders, such as payday lenders, who give smaller installment loans to people with poor and bad credit. Those loans have less favorable terms. That being said, they are a way to build credit if managed responsibly.
It will be difficult.
If you are unemployed, you will likely be denied for an installment loan from a traditional lender. Instead, you’ll want to consider alternative options such as payday loans, as they will often consider people who are unemployed. You will need to be able to provide proof of a valid source of regular income, though.
If you are looking to finance a large purchase, such as a car or a home, installment loans are often the best way to do that. They should not be used as a means of income. Before taking out an installment loan, be sure to compare all of your options and read the terms and conditions of your loan.
You should get a loan with the shortest repayment period that is feasible for your finances. Every extra month on your repayment plan is an extra month of interest you will need to pay. If you can afford to pay off a payday loan with your next paycheck, do that instead of opting for an installment loan. If you have a bigger expense that you simply can’t afford to pay off in one month, an installment loan is a good option that offers your finances some additional flexibility.