Whether you need money to cover some budget hole or you are planning some major event or purchase, a short term sixteen-week personal loan can help you satisfy any need. Learn below all essential information to get your 120-day loan tomorrow.
- 1 How does a four-month personal loan work?
- 2 How much do 120-day payday loans cost?
- 3 What do you need to look for when comparing sixteen-week loans?
- 4 How do I compare my sixteen-week loan options?
- 5 What are the benefits of a 120-day personal loan?
- 6 Am I eligible for a 4-month payday loan?
- 7 How can I find the right 16-week short-term loan for me?
- 8 How do I apply for a four-month payday loan?
- 9 Bottom line
How does a four-month personal loan work?
It is essential not to mix-up two concepts: four-month payday loans and four-month personal (installment) loans.
The former work within the limits of your monthly payments and the lender will automatically deduct the required monthly loan payment from your paycheck. Some in-store lenders might also ask you to sign four checks (including the payday dates, the required monthly payment sum, and your signature) so that they cash-in these checks once your salary is transferred to your account.
The latter (installment loans) are a usual format for a 4-month personal loan: you request the amount X and it is divided into four equal payments with the latter being a bit higher due to the additional processing charges that are generally added to the last payment. In this case, your payments are not legally related to your monthly paychecks and are not automatically deducted from your account. You are the one setting up the repayment dates, amounts, and actually making the transfers.
How much do 120-day payday loans cost?
The main additional charge for any loan is its interest rate. There are no universal numbers in this respect, the interest is individual for every lender and every client. The beneficial side of 16-week personal loans is that they do not rely on your FICO score; officially the lenders would not verify it so even if you have bad credit, it will not influence your acceptance probability. However, if your credit score is good, ensure to mention this to your lender since it might improve your credibility and hence the interest.
The interest rate ranges from about 5% to about 160% while processing and finalization fees would also differ depending on the lender you select as well as your state and local regulations. (Note that interest rates for payday loans can be 1,000% and even higher for a sixteen-week loan).
What do you need to look for when comparing sixteen-week loans?
Remember that payday loans are not legal everywhere; so if you decide to take a 16-week payday loan, then you need to always ensure to check if it is legal in your state. For example, in New Mexico, you can opt for personal loans only while payday bad credit loans in Oregon are absolutely legal. Besides that always double-check local regulations for all loans and lenders in your area to ensure that you comply with the requirements and that you understand the basics of the lending process.
The second essential component is cost. The final cost of your 120-day personal loan depends on the interest rate you get, processing fees applicable in your case, and any additional charges the lender may have. Always compare several offers to select the most affordable one.
Application criteria also differ so consider selecting a lender with flexible repayment dates should your salary get delayed or some unexpected spending occurs.
Should you need the money urgently, remember to ask about the loan approval process time. Some lenders would be able to approve a loan and transfer the money within 24 hours while others can process the request for 2-3 working days. Generally, online lenders approve loans faster.
How do I compare my sixteen-week loan options?
To compare possible 16-week personal loan options, you need to select the categories that interest you, such as interest rate, additional fees, processing fees, acceptance criteria, transfer term, etc. Then check several offers of both in-store and online lenders and write down their conditions based on your categories. Then compare them by the criteria and select your lender. Keep also in mind to confirm credibility and legal status of a selected lender.
What are the benefits of a 120-day personal loan?
The top benefits of 4-month personal loans include short approval time, low acceptance criteria, a wide selection of lenders, and absence of the loan justification need.
Generally, 16-week personal loans are approved on the spot by the ins-tore lenders and within an hour by the online ones. The money is then transferred to your account in the next 24 hours or 2-3 business days depending on the lender. Due to the low requirements to the borrowers (no FICO score check, no credit history check), basically, anyone who applies for a four-month personal loan will be approved for one provided that there is a steady job with regular income present.
Since the demand for such short term loans is high, the number of lenders in the market is also enormous so you will always have a possibility to select the right lender for your case.
And the best benefit of 120-day loans is that lenders do not require any explanation about the reason for the loan. Whether you need to fix a car or organize a weekly holiday for the family, nobody will ask you.
Am I eligible for a 4-month payday loan?
Here are the top criteria to check whether you qualify for a 120-day personal loan:
- State regulations. Remember that payday loans are legal not in all states around the country. So first and foremost, ensure that your state allows payday loans. If yes, then move to the following tips. If no, consider applying for an installment personal loan and check state requirements for such loans as well.
- Residency. Provided that your state find payday loans and personal loans legal, ensure that you are a resident of the state where you plan to apply for the 4-month loan and that you can provide that you are actually living in this state.
- Age and citizenship. You must be an American citizen or a permanent resident of the US over 18 years-of-age to apply for any personal loan.
- Income source. You need to have a steady source of income for at least three months to prove that you will be able to repay your sixteen-week personal loan.
- Checking account. This is not a mandatory requirement for most lenders out there, yet a checking account can add some perks to your offer.
How can I find the right 16-week short-term loan for me?
To find the right short term personal loan for your FICO score, salary conditions, and repayment ability, you can simply compare available offers and try to put them into your monthly budget to evaluate whether you will be able to repay the loan. In case you are not confident in your ability to calculate the outcomes, you can always visit several bank departments nearby and get a free financial consultation about the short term loans for your specific case with the bank employees.
How do I apply for a four-month payday loan?
To apply for a 120-day loan you need to collect the documents below, and then copy/scan them depending on the lender you select (in-store/online). Besides that make sure to bring originals with you as well. So here is the list of what lenders generally require:
- Proof of citizenship/long-term residence and age (ID card, driver’s license, papers proving your long-term residence, i.e. green card, etc.).
- Proof of employment and steady income (your work contract that states your employment term and salary conditions; besides that, you can also bring your bank statement for the past half a year – it is not obligatory but is generally greatly accepted by the lenders).
Do not forget your FICO score and credit history since both can do well when you are applying for sixteen-week personal loans.
With this essential information, you will have no problems with getting approved for a 16-week loan providing that it is legal in your state. However, please note that if you do not feel that you will be able to repay the loan within such a short term, consider applying for a 5-week personal loan. In case after reviewing this article you feel that a smaller loan will work better for you, consider shorter 3-week personal loans for your needs. In both cases, carefully review your budget, collect all your paperwork, and before accepting the loan review your monthly budget again to avoid missed payments and lowering of your credit score.