Applying For An Allotment Loan? Check These Aspects First!
If you are a federal employee and are in need of emergency money, borrowing doesn’t have to be hard. Private and traditional lenders are always assured of job stability and security, when it comes to government employees, and small loans like payday & installment loans are pretty easy to get. In this post, we are sharing facts about allotment loans, which can come handy before you apply.
Get approval with bad credit
Probably, the biggest advantage of installment loans is the quick approval process, especially with online lenders. You can check for allotment loans for federal employees with bad credit, for instance, where you don’t need a stellar credit score to get qualified. The approval process is simple, and you can expect money in your account in just 48 hours.
Know your options
There are two categories of allotment loans. The first one is called a discretionary allotment loan, where you can decide a certain amount of money to be paid in installment, from your paycheck per month. That’s on your ‘discretion’. You can also choose to end the loan term as you want and repay the rest of loan from another source, such as your credit card.
Non-discretionary loans, on the other hand, has a fixed installment to be paid from your paycheck every month, and the lender typically decides that. The allotment cannot begin and end as you please, so the terms are dictated by the lender. However, it is also most a breather to know that a fixed installment is all you need to pay, for a fixed period of time.
Are allotment loans worth considering?
When you compare allotment loans to payday loans, some advantages are pretty obvious. For instance, the interest rate is considerably lower. Secondly, allotment loans are easy to get, especially for federal employees. However, we recommend that you read the terms and conditions of the loan in detail. Any form of borrowing should be considered after having a fair idea of the repayment plan. You have to eventually pay for the allotment loan installments from your paycheck, so if you don’t have a plan in place, your finances can go haywire.
Check online to find details on allotment loans. Federal employees usually get approval easily, often without a soft credit check, but do check the cost of acquiring the money and how it will impact your other expenses and financial needs.