Installment Loans – The Basics
An installment loan is a type of loan that is repaid over time, usually within a set number of scheduled payments – however, normally at least two payments have to be made towards the loan.
When it comes to this type of loans, the term may be of just a couple of months or even as long as 30 years, depending on the borrowed sum, obviously. For example, if you are not familiar with this term, a type of installment loan is the mortgage.
In terms of the customers’ opinions on the installment loans, the latter is considered a safer and more affordable alternative to title and payday loans – and to open-ended credit as well, such as credit cards.
The Basics of Installment Loans
If we are to dive more into this type of loan, we find out that, even though it comes with relativelyhigh interest rates, these rates are not as higher as when we consider payday loans, for example.
As previously mentioned, mortgages are a type of installment loans, but car loans and similar loans can also be seen as installment loans. Moreover, this type of loan has been recently broadened and made to include unsecured loans as well.
This means that you don’t have to provide the lender with any collateral, such as a house or a car, in order to secure the installment loan. Basically, you can borrow money just like you would in the case of a payday loan – the only difference is the payments that have to be done over time.
Can I get an installment loan with bad credit?
Yes. The direct lender of an online installment loan will not likely bother to run a credit check on you if you have an adequate source of income to repay a loan.
Advantages of Installment Loans Online
First of all, when your application for an installment loan is approved, you know for sure that the payments are predictable and will be done on a monthly basis. Moreover, they come with a fixed interest rate when you take such a loan.
Naturally, your payments and the amount you have to pay will be set up at the moment you take out the loan – basically, you will know exactly when and how much you have to pay for your installment loan.
Of course, another advantage of this type of loan is that it comes with longer terms – it’s true, these longer terms are required as you have to pay off the loan on a monthly basis, but it can also make it easier for you to come up with a plan to solve your financial issues.
When it comes to actually receiving the money, the installment loans work quite fast and easy – after being approved for a loan, the money will be deposited directly into your account in just a few business days. You can also request to have them given to you in cash.
Best 4 Online “Guaranteed” Installment Loans (for Bad Credit) — 2019
The Bottom Line
You might think that an installment loan might be the right choice for you – however, you have to take some things into account before applying for a loan. First of all, you have to know exactly how much money you’ll need to get out of a certain situation and you’ll also have to be sure that you can pay it back.
In short, there’s no loan that’s better than another one – you have to determine which loan fits you best and which one comes with the advantages you need to make it through.