Did you know that 12% of consumers have an installment loan?
This translates into a lot of people who know that installment loans are a great way to secure the funds they need. Whether you are looking to pay off debt, make improvements to your home, or take a big vacation, instant installment loans may be worth looking into.
Read on for the benefits of these loans.
Installment loans are a type of personal loan or instant loan where you take out a certain amount of money which is then paid back in agreed-upon amounts called installments.
These installments, also called payments, are often monthly, but may also be weekly or biweekly depending on your lender or other factors, such as if you have no credit history.
There are many installment loan benefits, especially for an unsecured online loan which means you will receive instant credit and will not need to put up any assets as security.
You will simply need to prove to your lender you make your installment payments at the agreed-upon time without difficulty.
Installment loans are great for the larger purchases in life like cars, large household appliances, or that big vacation you’ve been wanting to take.
These items often have a higher price tag than you may have funds available for use. Instead of waiting years to save up these funds, an installment loan can be used to guarantee the funding for the purchase.
Installment loans can also be used to pay off credit card debt. When credit card payments get out of hand, an installment loan with a set payment each month may be a better alternative as it can be put into a monthly budget and has a specific end date.
As long as the installment payment works for your budget and won’t cause you to continue using your credit cards, it may be worth it to consider this as a debt pay-off route.
Another great benefit of installment loans is that you always know both your payment amount and exactly when it will be due. This is also true of your interest rate as all of these things are agreed upon at the origination of the loan, so there is no way for your lender to make changes to the loan while you continue to make payments.
The only way payments change with an installment loan is if you seek out refinancing of the loan.
Because you have agreed to a guaranteed installment plan, your lender will leave you in peace to make your payments. You can typically choose the term of your loan, so if you choose a length of time that works best for you, your payment should fit your budget and allow you to make your payments with ease.
You can often choose a loan term of up to six years with installment loans. This is much different than the typical payday loan which must be repaid with your very next paycheck.
This means you will have the funds you need to get the car or make the repair or use the funds however necessary, and you can make the installments payments without any unnecessary stress.
If the payments do become a stressor, many lenders do offer refinancing options.
A big benefit of being approved for an installment loan is that it can help you build your credit.
Your installment loan lender will report your loan and your repayment history to the credit bureaus, so this is a great reason to make your payments regularly and on time. Installment loans can be taken out for as little as $1000 and as much as $50,000 and can significantly improve your credit score when paid back faithfully.
Installment loans are a wonderful way to show you can be consistent with payments and manage a long-term loan agreement.
These loans can also help you rebuild your credit if you have had a bankruptcy or some other type of credit issue in the past. By making your payments on time and fulfilling your loan agreement, you can rebuild your credit score.
Most lenders today allow you to make your payments online as well, or by phone. This will allow you to stay on top of making your payments and may even allow you to set up reminders of when your payments are due.
One more benefit of online installment loans is that after a credit check, many lenders can get the funds to you quickly. Typically, you fill out an online application, go through the lender’s process to get approved, and then once you are approved you receive the cash immediately via direct deposit.
This is quite different than the typical loan process in a bank where you must often wait weeks to go through underwriting to look at your assets, collateral, and a host of other considerations.
If you can see the benefits of instant installment loans, it may be time for you to start making a plan to apply for one.
You can purchase the new car you need, finance the home repairs you have been considering, or take the vacation you have been dreaming of. The best part is that you can make easy monthly payments and not be surprised by raised interest rates or changing payments partway through your loan term.
Click here to connect with lenders today.