Installment Loans:  The Basics 

In the ongoing struggle to get back on your feet, you can find yourself turning to installment loans. Installment loans are sometimes referred to as short-term cash advance loans. Installment loans have many benefits that make them a popular choice for consumers who need immediate access to cash. 

 

 

Installment loans are a type of loan where you borrow a certain amount and then pay the lender back in smaller payments. It is typically require a larger sum of money than other types of loans, so installment loans tend to have higher interest rates. Installment Loans can be taken out for any number of reasons from debt consolidation to medical bills. 

To get an Installment Loan, you must have a job with a steady income and a bank checking account in your name.  

If you’ve never applied for an installment loan before, there are certain things about these types of financial products that you should know before applying for one. It is extremely important to understand how installment loans work before taking out any kind of private financing agreement because this will ensure that you get the product you want without incurring any surprise fees or payments. 

How Installments Loans Work 

Installment loan companies that provide consumers with these types of loans, will generally work with the customer consumer to determine exactly how much they would like to borrow and how long they can afford to repay it. 

One type of installment loan is a short-term loan that allows individuals to borrow money in exchange for making scheduled payments until the debt is repaid in full (typically 3-, 6-, or 9-month payments) depending on the loan amount. Installment Loans are also unsecured Installment Loans meaning that borrowers do not have to provide collateral or security for Installment Loan applicants who meet the lender’s Installment Loan criteria.  

Installments Loans can also be used by individuals with poor credit scores who can use Installments Loans as a means of establishing a good repayment history  

Installment Loan companies also provide consumers with an Installment Loan agreement that explains the repayment plan in full detail, so that there are no misunderstandings  

Keep these few things in mind before you consider taking an installment loan: 

Interest rates tend to be high, before applying for any installment loan you must spend time looking at the terms and conditions of the loan agreement.  

As interest rates for Installment Loans are relatively high, make sure you look at all your options before choosing an Installment Loan company. Know what terms and conditions each lender is offering so you can make a good decision about where you will apply.   

Installment Loans should be taken out carefully, only after careful consideration of the consequences. If you cannot pay back an Installment Loan on time, or if you file bankruptcy to avoid payments, it will damage your credit score and remain on your credit report for seven years. Installment Loan companies may also report missed payments and defaults to the credit bureaus, causing your score to drop even further. 

Installment Loans could be used for many different purposes:

home repairs, medical bills, expenses, or unexpected emergencies can all be addressed by an Installment Loan. That is why is very important to review and compare what the market has to offer and which one foot better for your personal needs. 

MyFundingChoices.com can be an option for you to get an installment loan that meets your needs and helps answer all your concerns.  You can apply online or reach out to the team @ (866) 949-5040.  They will cover the requirements to qualify as well as explain the terms of your agreement.   

A short-term installment loan may not be the best solution for some people but for others, it can be a great option to help cover unexpected expenses or consolidate some debt.  It is important to remember a responsible consumer can successfully meet their needs without incurring the risk involved.