What are installment loans?
Installment loans allow borrowers to repay the amount borrowed in equal monthly installments over an agreed period. Repayment terms of this type of loan can be as soon a few weeks/months or as long as a few years. There are variety of online installment loans to choose from depending on your preferences and situation.
Reaping the many benefits
One of the top benefits that you stand to gain by taking installment loans is the fact that you will have a lot of time to repay the loan. This means that you are relived from unnecessary financial pressures and you can focus on consolidating the debt and solving your financial problems. Additionally, most lenders work closely with borrowers to ensure that the scheduled repayment intervals are not only convenient to the borrower but also realistic. You can, therefore, pay responsibly and regularly with reduced interest until you fully repay the borrowed amount.
Who is Eligible?
Eligibility for installment loans varies between lending firms. However, everyone can get access to online installment loans—even if you are unemployed. In most cases, application is completed online (from lenders’ websites) and approval is made within a few hours after completing the application form. For a loan that’s to be repaid for a longer duration (like several months), however, it is recommended to investigate the terms of the lender and options that are available for you.
Is it only for borrowers with bad Credit?
Many people assume that online installment loans are only meant for borrowers with bad credit. This isn’t true; remember, installment loan is just like a personal loan—anyone can apply. Just like other types of loans, you are not guaranteed that your application will be approved; there are a lot of variables that lenders will still have to consider before approving your application, including your income, credit score, and additional debt. By and large, you application will be approved faster if you have good credit score. You can also secure great repayment terms and attractive interest rates.
While online installment loans can go a long way in helping you consolidate your debts and in paying your emergencies, like any other type of loan, they can put you even further behind if you are unfamiliar with some of their common pitfalls. Accordingly, it pays to carry meticulous research on the terms and costs associated with the loan before you sign on the dotted line.