What is an Income-Based Loan?
Traditional loans typically require borrowers to have a fair to good credit score in order for applicants to get approved. While it’s usually an efficient way of letting people borrow money, it can be incredibly prohibitive for those who don’t have good credit.
As its name suggests, income-based loans are loans you can take out based on your income and actual repayment capacity. Lenders that provide income-based loans will take your income status as the primary consideration when assessing your eligibility and determining the exact amount you will get when approved. These loans are usually easy to qualify for, as long as you can prove your repayment ability by your stable sources of income.
How Can I Get an Income-Based Loan?
Income-based loans are more convenient and accessible than traditional ones, and getting them for yourself is a breeze.
The first and most important thing you must do is shop for a respectable lender. Many predatory online lenders are waiting for you to be careless, so if you have no clue how to find a reliable lender to get proper financial services, US Installment Loans is the legitimate and reputable broker you can count on as we can connect you with our network of trustable licensed lenders across the US.
Here at US Installment Loans, you can get all sorts of loan services without having a perfect credit background, and lenders we work with will likely consider your loan eligibility based on your income status. All you need to do is fill out our user-friendly online form. Other than basic personal information, you will need to present additional requirements if necessary to continue with your application online, which include the following:
- Proof of income. Since most loans through US Installment Loans are income-based, you will need to show evidence that you can repay the loan with a source of regular income.
- Legal documents. We provide our services only for US citizens and permanent residents, so you will need to submit related legal documents such as your legal ID, social security number, and more.
- Bank statements. Your bank account should show money coming in at regular intervals. This also gives lenders a peek into your finances to help determine your eligibility and final loan amounts.
How Does US Installment Loans Compare?
|How much do I qualify for?||Up to $35000||Competitive rates|
|What's the max loan length?||Up to 36 months||Fast decisions|
|Do lenders check my credit?||Yes||Soft credit checks|
|All credit levels accepted?||Yes||Bad credit doesn't matter|
|Chances of approval||Good||High approval rates|
|When am I allowed to apply?||24/7 online||Easy application|
Do Income-Based Loans Check My Credit?
Income-based loans don’t typically require hard credit inquiries; most lenders do soft credit checks to determine the credibility of an applicant. Soft checks won’t reveal as much financial information as a hard credit inquiry and won’t affect your credit rating, and this technique is frequently used to check a person’s overall economic history when they are trying to get a loan online.
Furthermore, lenders that perform soft credit checks will mark their product as “no credit check loans,” which is not entirely accurate as soft checks are also a kind of credit checks, and credit checks are inevitable during the process of getting a loan in the US due to strict financial regulations.
If you want to get a loan but are concerned that your bad credit score may get in the way, don’t worry, as income-based loans don’t usually depend on your credit score. In fact, many lenders, such as those from the partner network of US Installment Loans, don’t mind giving income-based loans even to borrowers with poor to no credit.
Types of Income-Based Personal Loans
There are several income-based loans you can get through US Installment Loans. Here are some of the popular loan choices from our regular customers:
As one of the most picked financial-friendly solutions, bad credit installment loans are known for their flexibility as these types of loans break your loan amount into more manageable chunks to help reduce the stress of repaying the loans. Your loan terms will dictate how long the installment period is, but ultimately it depends on the lender you choose to deal with. Most installment loans offer lasting anywhere from 3 months to 60 months.
Let’s say you want to buy a car for various purposes. You know that automobiles can be expensive, even for the second-hand markets, and not all people are qualified to take out a traditional bank loan to fund their car purchases. Fortunately, income-based personal loans can get you funded faster and easier, even with poor credit.
Personal loans can also be used to cover massive medical bills or housing renovations since there isn’t any limitation on using these types of loans. The best part is that you can easily qualify for a higher amount of personal loans, up to $35,000, with minimal requirements and stable sources of income!
These income-based instant cash loans are exactly what they sound like: they give you access to quick funds before you even receive your salary, allowing borrowers to pay urgent bills on time or afford emergency expenses with ease. Payday loans are short-term loans with a repayment period of up to one month, so borrowers usually need to repay their loans in a lump sum after they receive their next paycheck.
Income-Based Loan at US Installment Loans
Income-based loans are beneficial for whatever challenges you might be facing right now. Traditional bank loans can take an absurdly long time to release funds – and there’s very little chance that you’ll get approved if you have bad credit, which is the reason why income-based loans are so crucial for those in need: they provide people with the possibility to meet their daily needs, regardless of their financial standing.
However, many online lenders are out there, and you must pick a reputable lender to borrow from – somewhere like US Installment Loans. US Installment Loans work with licensed lenders across the US that specializes in giving out loans to customers with bad credit, so you don’t have to worry about your score when applying!
Can the repayment term be based on my income status?
While the repayment amounts are usually fixed when you select a specific loan offer with a specific repayment period, it is possible to discuss your repayment schedule with your lender. Many lenders will consider your income schedule when it comes to monthly repayments. For instance, if you typically receive your salary on the 15th of the month, you can usually arrange a repayment schedule in accordance with this.
How can I get a personal loan based on my income?
You can get a personal loan based on your income by choosing the right lender and undergoing the application process. Once you’ve submitted all the information necessary to get a loan through our online platform, receiving responses from our network of lenders can take as little as a few minutes, and you can expect to get the funds you need as soon as a few hours after your application.
What are the pros and cons of income-based loans?
Income-based loans are more accessible because many lenders don’t need a hard credit check and can process the request much faster than traditional loans. However, loans like these will typically incur more interest with more late payments and other fees, which may increase repayment risks and may lead to severe debt cycles.