Installment Loan Alternative
Needing some extra cash to cover an urgent expense from time to time is a common occurrence. One option people might be familiar with is an installment loan. An installment loan is a personal loan that borrowers pay back in installment payments over time. There isn’t much in the way of minimum requirements to take out an installment loan. Applicants need to have consistent income, but as long as they have that and a few other minimal requirements, they can expect to get approved. While terms, interest rates, and the amount people can borrow may vary by state, the typical term length for an installment loan is between six and 12 months. While installment loans may be a good choice for a short-term lending solution, they are not the only option.
What Other Options Are There?
People may not be so familiar with personal lines of credit. A line of credit is another short-term lending option that allows customers to withdraw, in cash, any amount up to their credit limit. Not to be confused with credit cards, which typically limit cash withdrawals to a certain percentage of a borrower’s total credit line, personal lines of credit allow borrowers to withdraw up to their entire approved line of credit amount. Personal lines of credit are good for situations when you need cash quickly. With a personal line of credit through Ladder Credit, customers have more flexibility with the funds they borrow. Borrowers may choose to withdraw only the funds they need. Unused funds remain in the line of credit account and are available to withdraw. One of the best perks of personal lines of credit is that paying down your balance immediately increases your available credit to withdraw in the future.
How Does It Work?
The process of obtaining a personal line of credit from Ladder Credit is quick and easy. Applicants start by filling out the form on our site. There are a few minimum requirements that they will need to meet to qualify. We can only issue lines of credit to individuals who are at least 18 years of age. Applicants must have both a checking account and a regular source of income that meet our minimum duration requirements, and minimum income requirements. Ladder Credit does not extend lines of credit to active duty military, their spouses or dependents. Other requirements and restrictions may apply.
After submitting the application, a loan processor will follow up by phone to verify information. If customers submit the application during our normal business hours, one of our loan processors will typically call within 15 minutes after application submission. When approved, we will email the loan documents which will need to be signed and returned before a line of credit is extended. Once the line of credit account is set up, customers may request a draw from their line of credit and funds may be made available for withdrawal as early as the next business day.
What Are the Advantages?
A line of credit holds several advantages over an installment loan. The most significant is that applicants only pay interest on the amount they borrow for the time until it is repaid, rather than having to pay interest on a total-approved loan amount. If a borrower needs more funding after taking out an installment loan, they will need to apply for another loan. With a line of credit, customers can withdraw more funds if they still have an available balance.
Repayment on a line of credit is flexible. A customer can choose to pay more than the minimum, up to the full amount owed, and can also make payments before their statement due date. Borrowers may even choose to pay off their full line of credit before their due date without penalty. Customers need only call Ladder Credit during normal business hours to make these special payment arrangements.
The flexibility and convenience of a line of credit makes it an excellent choice when one is in need of extra money right away. Apply today!