Apply by Phone Installment Loans

Installment loans are available for application by telephone for a variety of purchases. Traditional lenders such as banks and credit unions offer installment loans for automobiles, home electronics, and appliances -- and even for summer vacations. Terms of installment loans vary, but usually borrowers agree to payments for 12 to 60 months or even longer, depending on the purchase. Some high-risk lenders offer installment loans for shorter periods.

Considerations

Qualifications for installment loans by telephone are the same as for loans applied for in person or over the Internet. Many banks and credit unions accept installment loans over the phone through their customer service departments. The customer service representative asks the same basic questions that appear on paper applications customers present in person. Questions include the prospective borrower's driver's license number, Social Security number, home address, telephone and employer.

Credit Checks

Applying for a loan over the telephone usually leads to a credit check by the lender, although some high-risk lenders may offer installment loans by telephone without a credit check. Banks and credit unions may conduct the credit check during the application process with the borrower on the phone. In certain situations the borrower may receive approval for the loan during the telephone conversation.

Interest Rates

Interest rates for installment loans over the telephone are usually the same as loans offered by the lender on applications made in person or over the Internet. However, borrowers who have long banking relationships with the lender may negotiate over the telephone for lower interest rates. Non-customers of the bank can negotiate over the telephone as well. Approval for a lower rate usually depends on the borrower's credit score and history with the bank, if any.

Short-Term Loans

Some high-risk lenders offer installment loans by phone that do not require credit checks but feature exorbitant interest rates. For example, in Illinois, some lenders most known for payday loans offer installment loans for six months at up to 99 percent interest. The lenders claim the high interest rates are necessary because the lack of a credit check makes them riskier than loans made by banks and credit unions.

Followup

Lenders usually require followup on all installment loans applied for over the telephone, upon approval. Depending on the lender, the borrower may have to visit a branch office to sign official loan documents or show proof of identification, such as a passport or driver's license. The applicant may also have to provide pay stubs or other proof of employment or income. Some lenders may allow the applicant to send documentation by fax or mail.