People who have tried to obtain a loan from a bank or credit union may be dismayed at the stringent requirements. They now understand the old adage that it’s only possible to borrow money if you don’t need it. Another option that has less strict requirements is an online installment loan from a company like Blue Trust Loans. The borrower will have to pay higher interest, but these companies make loans available to consumers with credit problems.
This isn’t to say that these lending companies have no qualifications for applicants. Depending on the lender, the applicant’s credit may be checked with a technique known as a soft pull. This gives the lender access to the most basic information without a hard pull that affects the consumer’s credit score. Installment loan companies are willing to lend money to applicants with less-than-stellar credit, unlike most banks and credit unions.
Proof of Income
A typical requirement is for proof of employment and verification of income, which can be provided with copies of pay stubs or a W-2 form. Some companies lend money to self-employed men and women, asking for a copy of the most recent year’s tax return or several months of bank statements. Each lending company may have its own minimum income requirement too.
In addition, the applicant must have an active checking or savings account. Deposits are made directly into these accounts and the payments usually are made through automatic withdrawals. Borrowers have the option of making payments earlier than scheduled with a debit card. Some lenders may also ask for a driver’s license as an additional form of ID aside from the Social Security number. And a lending company may have an age requirement of 21 or even 25.
Essentially, the company wants to make sure the applicant can make the payments as scheduled. Default rates are higher than the norm with these lending products since some of the customers are struggling financially. These companies try to work with customers who cannot make one of the payments on time, so borrowers shouldn’t hesitate to call and talk with a customer service representative.