So you’re thinking of applying for an installment plan – have you thought about its pros and cons yet? It might be good to learn just what sort of advantages and disadvantages before you decide on anything. In this article, we will help you dissect the pros and cons and help you decide on your own.
It is easy enough to apply for an installment plan. Nowadays, there are a number of lending companies that offer online applications that don’t require collateral, a co-maker, or even a credit card. All you need is a stable income, a valid government ID, and you’re good to go.
And in case you’re wondering, yes, BillEase is one of those lending companies that offer installment plans for your Lazada purchases – no credit card required!
But back on your application. While it is easy to apply for an installment plan, it is also easy to overlook some important factors that might make you want to reconsider if an installment plan is the right payment option for you.
So here we laid down some clear pros and cons of applying for an installment plan. Read them carefully and decide for yourself if you’re 100% up for it!
Installment Plans are Convenient
One of the many advantages of applying for an installment plan is how convenient they are. Essentially, you can purchase any item now and pay for them later.
Installment plans also give you the opportunity to break up the total amount of your purchases into easier-to-pay chunks. Payment schedules can be tailored to suit your salary schedule, so you won’t have any trouble getting money for your repayments.
Easy to Apply
As mentioned earlier, it is easy enough to apply for an installment plan. In fact, we daresay that applying for an installment plan is easier than applying for an outright loan.
Requirements are simple enough and the process is less stringent than that of a loan. In BillEase, we only require you to be of legal age (18 years old and above), have a stable income, and have a valid government ID. The verification process usually takes only 1 banking day as well! So as soon as you’ve submitted the online application form and the necessary documents, you’re good to go.
No Collateral, No Credit-Card, No Co-maker Required
Online installment plans like BillEase’s don’t require any sort of collateral or co-maker before we approve of your application. We also don’t require our customers to have credit cards in order to avail our services.
Why? Simply because we want to provide an easy and hassle-free installment plan service for our customers. We understand that not everyone has assets that can be taken in as collateral and that acquiring a credit card is not easy as it sounds.
You can only borrow up to a certain amount
Unfortunately, the sky is not the limit when applying for an installment plan. Even if, say, you want to avail P15,000 worth of an installment plan, it will still be up to the credit company’s discretion if they will allow you that amount.
Having a borrowing limit might be annoying for you but truth to be told it still works for your benefit. With an imposed limit, you can at least make sure that you are not taking on too big of a loan for your income.
Besides, your credit limit can still increase – simply make sure that you continue servicing your installment plan as faithfully as possible. If the credit company sees that you are a good payer and are capable of taking on a larger loan, chances are they will increase your credit limit.
Duration of repayment time can be a bit short
Most online lending companies only offer short loan durations – anything from 30 to 90 days. Because your installment plan is not “secure” (meaning no collateral, credit card, or co-maker), lending companies can only allow you a short time to complete your repayments.
Much like your credit limit, though, there is a good chance that through faithful payments, your credit company will eventually grant you a longer repayment time for your next loans so you never know!
You are limited to a partner establishment
Most credit companies partner with certain establishments in order to provide their customers an installment plan. This partnership is often exclusive, such as that of BillEase with Lazada.
So if you’re looking to purchase from other establishments not supported by your installment plan provider, you might need to reevaluate your circumstances.
Now that you have a better grasp of the pros and cons of applying for an installment plan, you are not in a great position to decide for yourself if an installment plan is the right payment method for you. And should you decide to continue with your application, BillEase is here to help you get your next Lazada purchase on an installment basis.
Curious how BillEase works? Watch our short video below.