What Are Installment Loans, and How Do They Work?
A loan with a set number of scheduled payments over a certain period of time is known as an installment loan. Mortgages and auto loans are examples of installment loans. These periodic installments have fixed payments that satisfy the principal and interest over the set period of time. Generally, the installment payments are the same amount, but some loans’ payments vary slightly throughout the term.
Once you satisfy all your loan payments, the loan is paid off and the lender closes the account.
Who Should Take Installment Loans Online?
Individuals or businesses who cannot afford to make a one-time purchase with cash but can make monthly payments should apply for installments loans online. These are convenient ways to buy houses, cars or pay for college tuition.
Installment loans’ periodic installments are manageable and give the lender some assurance that the borrower can repay the debt. This also benefits the borrower, as he or she knows what the monthly payment is and can budget for it. This makes the likelihood of default far lower.
Even with a bad credit history, you can still take control of your financial life and make better choices in future.
Requirements for Getting an Installment Loan
- Be over 18 years old
- Steady income
- A valid bank account
- Physical address
- No recent bankruptcy
How Installment Loans Can Help if You Have Bad Credit
Needing quick cash in these unpredictable economic times is not surprising. We have to deal with increased cost of living and increased expenses. Such situations may leave us burdened with debt, which can reflect badly on your credit history.
If you have bad credit and can get an installment loan, this not only helps you make that large purchase without a huge amount of cash, but timely payments can also help build your credit.
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