How to Choose the Best Installment Loan Lender in Meridian, ID

Technical Characteristics of a Good Lender:

• Interest Rates. Lenders can offer different interest rates, which significantly impacts the overall cost of the loan. Rates can be fixed or variable, so understanding how each lender structures their rates is crucial. The consistent interest rates of installment loans are generally a more stable option than higher-interest, variable payday loans. You can see our previous blog about Installment Loans vs. Payday Loans for more information on this topic.

• Loan Terms. The length of time you have to repay the loan can vary. Some lenders offer short-term loans with higher monthly payments but lower overall interest, while others offer longer terms with lower monthly payments but potentially higher total interest. However, a longer-term, lower-interest installment loan can be a great way to give you access to cash while also keeping the rest of your financial goals on track.

• Fees and Costs. Be aware of any additional fees such as origination fees, late payment fees, or prepayment penalties. These can affect the total cost of the loan and your financial flexibility. Any company that keeps secrets about the fees and penalties associated with their loans isn't worth your time! Additionally, reputable companies like Idaho Finance don't charge prepayment penalties because we don't believe in penalizing our clients for achieving their goals faster.

• Eligibility Requirements. Different lenders have varying requirements for credit scores, income levels, and debt-to-income ratios. Make sure you meet the criteria before applying to avoid unnecessary credit inquiries. Responsible lenders like Idaho Finance do their best to set clients up for success, even those with bad credit. (To learn more about credit scores and how installment loans contribute, see our previous blog here.)

• Approval and Funding Speed. Some lenders can process applications and fund loans faster than others. Emergencies happen. If you need money quickly, look for lenders known for their fast approval and disbursement times. Lenders like Idaho Finance can offer approval on the same day as application.

• Repayment Flexibility. Check if the lender offers flexible repayment options, such as the ability to change your payment date or make extra payments without penalties. As stated, there are lenders like Idaho Finance that don't penalize you for making payments early or for a higher amount than planned. We also do our best to set a payment schedule at the start that is reasonable for you to achieve, reducing financial stress.

• Loan Amounts. Different lenders may offer varying maximum and minimum loan amounts. Ensure the lender can provide the amount you need. Payday loans are often hampered by the size of your next expected paycheck. Sometimes, that's not enough. Installment loan lenders can generally offer larger loans without pushing you beyond what makes sense for your budget.

• Credit Reporting. Some lenders report your payment history to credit bureaus, which can help build or improve your credit score if you make payments on time. Others may not report, which might impact your credit-building goals. Payday loans are almost exclusively not reported, which means your credit score does not get any benefit from being a responsible borrower. Installment loans generally do report, which means you get 'credit' for your credit.

• Regulatory Compliance. Make sure your lender is properly licensed in the state(s) where they do business. Idaho Finance is licensed in the State of Idaho. Other regulations are made by the Idaho Department of Finance regarding consumer rights and borrower protections. It’s crucial to verify your lender’s compliance to avoid predatory practices (like exorbitant interest rates and fees) just because you need financial help quickly.

Behaviors of a Good Lending Company:

• Customer Service and Support. The quality of customer service can impact your experience with the lender. Look for lenders with good reviews and responsive customer support. At Idaho Finance, we're proud of our history of great customer service and aim to help our clients however we can.

• Online vs. In-Person. Consider whether you prefer an online lender for convenience or a traditional bank for face-to-face interactions and personalized service. Idaho Finance has the option to apply online for convenience, but we also have in-person locations (See our Contact Us page for location information) if you'd like more personalized, face-to-face service.