Ever forget to take out the trash or mail that birthday card to your sibling? We all do. What you don’t want to do is forget to make a payment on an important bill.
Traditional installment loans offer automatic payments, so that you don’t have to worry about making your payments on time. Traditional installment lenders, and many other companies for that matter, use something called the automated clearing house system, or ACH. There are lots of benefits to using automatic payments:
- You won’t forget your payment;
- Since your payment is automatically paid on the due date, there’s no chance you’ll get dinged with a late fee;
- You know what day your payment will be taken out of your account, so you can budget;
- No more worrying about logging into your check account to pay or using checks, stamps and envelopes to pay manually.
Lenders benefit from automatic payments because the funds are received quickly, securely, and on a set schedule. Knowing when to anticipate payments helps lenders manage their cash flow, too.
It’s important to note that traditional installment lenders do not require a preauthorized ACH, payroll deduction, or personal check from you as a condition of a loan, like other lenders do.
They simply provide you with the option to schedule automatic payments and the ability to stop those payments at any time. If you would prefer to pay in-person or by check, cash or money order, that’s fine, too!