2022 Guide To Finding The Best Online Installment Loan
Installment loans consist of borrowed money that is repaid over a designated period of time (i.e. 3, 6, 12 months, etc). Paying off your loan is done via installment payments that are due on a scheduled date every payment period until you have paid off the sum borrowed (plus and interest or fees).
Online installment loans have been increasing in popularity over recent years because, unlike payday loans, the fixed payment schedule offers the opportunity to potentially avoid excessive fees like “late payment” fees, “reconnect” fees, or other financial penalties.
They also provide the flexibility of managing your re-payment plan over an extended period of time, allowing for better management of your finances, making an easy installment loan a good option for many in need of temporary financial assistance.
What’s the difference between these and other loan types?
Payday loans online usually range in amounts from $100 all the way up to a maximum of $1000. The average usually is around $300-$500 borrowed.
Repayment of an online payday loan is due in ONE large lump sum on the due date. This one time re-payment will include the total amount borrowed, plus any interest and fees.
Even those with the WORST credit out there can often get approved for an online payday loan. Good, bad or outright ugly…our lending partners work with all kinds of credit.
Ok, so what about “online installment loans?”
Online installment loans offer borrowers a chance to apply for a larger amount of funds. Typically these range in value from $200 all the way up to $5000+.
Repayment is one of the biggest differences, with payments being due monthly in equal sums for the period of the loan. For example, if you borrowed $1000 for four months, you would pay $250 once per month (plus applicable interest and fees) for the next four months. With a payday loan, the full $1000 + fees and interest would be due in ONE lump sum at the due date.
Because lenders allow you to make smaller payments over an extended period of time they typically require better credit for an installment loan than they do for a payday loan. This doesn’t mean that you need great credit to get approved, but it is often MUCH easier to get approved for a payday loan online than it is for an installment loan. For this reason, we suggest that if you need less than $1000 you apply for a payday loan instead.
Personal loans range from small to larger amounts ranging into the thousands.
Repayment of a personal loan is made over time, typically months or years.
Banks and financial institutions use credit and income as the primary decision-making factors in determining whether or not you’ll get a loan, for how much, and the terms.
Who are online installment loans best suited for?
The fact is, unexpected life events can rear their ugly head at any time in our lives. Many of these events come with an abrupt and often devastating financial obligation.
Take the following circumstances for example:
- A family member gets injured and you have an imminent emergency room bill to pay
- Your beloved dog gets hit by a car and the vet bill is due before continued care
- Your child needed clothes or supplies for school and you went over budget that month. Now you need fast access to cash for everyday living expenses like food and utilities.
If these or other circumstances come seem familiar…you are NOT alone. Things are hard out there right now, and with the rising costs of everyday goods and services, it can be hard to keep up no matter how well you try to plan ahead.
So if you find yourself in need of access to funds fast, and don’t have the time to wait for traditional bank paperwork to go thru, and/or you have poor credit or low income, an installment loan online might be a good option for you and your family until you can get things back on track financially.
Some Of The Potential Disadvantages With Online Installment Loans May Include:
- Typically high-interest rates
- Sometimes unfavorable re-payment terms
- Can be habit-forming (i.e. using them too often to cover financial shortfalls vs proper budgeting and planning)
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