Of course, if you’ve landed on this page, you’re already struggling to manage your finances. Feel no shy, because you’re not alone.
According to a report, the unemployment rate in California has increased by 11% since March 2020.
Evidently, when citizens are out of jobs, it’ll become tough to manage even the daily expenses. And notably, the pandemic is the reason this crisis surfaced in the first place.
Thankfully, citizens can now opt for no credit check installment loans in California without any fuss.
And yes, these loans help overcome financial struggles!
If you’re interested to know ‘how’ keep reading below.
Installment Loans in California For Single Parents
It is quite understandable that single parents could be the worst hit by the recent pandemic. Being jobless and feeding the kids is no less than a nightmare for any parent.
Children have more critical needs than adults. For example, hygiene and health needs for growing kids, especially, cannot be ignored.
To add up to this, there are clothing needs, since growing kids shed old clothes more quickly than a grown-up kid. And there are many more such needs.
Moreover, single parents with no income source can also struggle to manage a conventional loan. This is because conventional banks consider both income and credit history of the applicant.
Installment loans from private lenders, on the other hand, require no such scrutiny. For this reason, these installment loans are also known as unsecured short-term personal loans. In other words, the lenders require no security or collateral to give out a loan.
This particular fact makes installment loans a worthy solution for single parents in financial distress.
Lenders don’t need to know the Purpose of Loan
When applying for a conventional loan, there are a lot of formalities that need to be fulfilled. And one of these formalities is stating the purpose of the loan.
To put this into perspective, a car loan can only be availed when buying a car. Similarly, a home loan is meant for purchasing a home for personal use only.
This could create a lot of problems for borrowers who cannot specify the exact reason, say refilling pantry at home.
It is noteworthy that most of the borrowers who seek short-term personal loans are the ones who need money immediately. Filling out all the details and stating the purpose of the loan is a time-consuming process.
On the other hand, applying for an installment loan from a private lender eliminates these challenges. For instance, the borrowers need not mention the purpose of the loan. In fact, the lender does not enquire about where the loan money is being spent.
In short, taking out an installment loan in California is much easier than taking out a conventional loan.
The Debt is Easy to Pay with EMIs
Short-term personal loans from private lenders come in a variety of options. For example, there are payday loans, mortgages, invoice-based loans, and so on.
And notably, all these loans come with no credit checks. Or for better understanding, let’s say no credit history check.
But, at the same time, not all the loans are supposedly repaid in installments. For instance, payday loans are ultra short-term personal loans. And, usually, the borrowers are to repay the loan in one lump-sum payment.
This could be tough for many, as arranging for the principal amount, and that too along with the interest and processing fee in one go can disturb the monthly budget.
Installment loans, in this particular scenario, prove to be quite helpful. Since the principal and the interest are repaid over a period of time, and in installments, the creditors are not burdened.
It is quite easy to manage personal finances and debts when there is an option to pay off your debt, monthly or weekly by making small contributions.
Quick and Easy Loaning Process
In case, you’ve ever taken out a car loan or a home loan before, then you must already know how long the process could take. For example, when you apply for a loan through a traditional bank, it could take up to a week to process your loan application.
There are several steps involved that delay the loaning process. To put this into perspective, the loan application is firstly scrutinized by the bank officials.
Your credit history, your score, your savings, monthly earnings and expenses, and many other things are taken into account.
Following this scrutiny, your loan application is either approved or rejected. Let’s say it’s approved- then you may need to submit additional documents before you can expect to receive the loan amount in your account.
Whereas, when you apply through an online money lending network or through direct lenders, the chances are there are only a few checks. And they are mostly to check your income and expenses to ensure that you can repay the loan in time.
The reduced scrutiny and absence of a long list of paperwork make online installment loans a worthy candidate when you’re looking for quick money.
To be precise, the time for availing of an online installment loan is approximately 24 hours. Yes, you can expect to receive your loan to be credited into your bank account within 24 hours of the approval.
Low Interest as Compared to Other Options
Although the interest levied by private lenders is higher than the centralized banks, for short-term personal loans, the interest could reach as high as 70% on the principal.
For example, payday loans have the worst reputation when it comes to interest rates.
When compared with these other private loans from private lenders, installment loans are pretty economical. This is because the loan is extended for a comparatively longer period of time, say one and a half years.
A loan that extends longer than a few weeks or months can bring in long-term revenue for the lenders. And this is the primary reason why lenders prefer to levy lower interest on installment loans.
It is, however, noteworthy that the interest would still depend upon the term of the loan, and the amount you borrow.
To sum it up, installment loans in California can be a boon during these tough times. Especially for people who have urgent needs to meet, but little cash to fulfill.