Installment Loans

Short term installment loans are provided for repaying the money borrowed in fixed installments during a certain time period. Once you apply and get approved, your lender will transfer the money you need directly to your bank account. The terms of getting installment loans differ from state to state. To get a better view of the matter, find the answers to your questions here.

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How installment loans work

Larger amounts are available for installment loans as compared with payday loans. Here one can apply for up to $5000-loans and make the repayment part by part rather than at once. What concerns the terms of the repayment, you can get as long as up to fourteen months' time for repaying your debt. Anyway, if you find you are able to repay the loan earlier than set, you won't face any penalties. Nowadays, one can apply for an installment loan either through a direct lender or a matching service. The latter is designed to match the applicant's requirements and criteria with lenders' offers and reveal the best options.

Installment loan features

1. The easy application process is the first feature worth naming. It takes only a couple of minutes to fill in the application form and find out its status. Moreover, there are lenders which offer mobile apps through which it is possible to make the entire process. Once you have your application approved and you sign the contract, the money is transferred to the mentioned bank account within one business day like in the case of personal and payday loans.
2. The eligible criteria for installment loan providers are somewhat more flexible. These services, as a rule, don't make inquiries on the applicant's credit score, yet need a proof he is able to repay the money.
3. Fees are diverse here. Such aspects as the amount of the installment loan, the terms and the state's regulations all together determine the fees you are to pay.
4. The state's laws play a major role in deciding how much can be lent to the applicant and on what terms. There have been and are cases when applicants have got up to $10.000 and the term for repaying the sum has extended to five years.

Pros and cons of installment loans: consider before applying

1. The quick turnover time period is definitely one of the major advantages installment loans provide.
2. Installment loans are a great way out for those employed people who didn't manage to keep their credit history clear. As a rule, banks provide credits taking into great attention the credit score of the applicant, whereas installment loan providers only need to make sure the applicant will somehow manage to repay the debt (is employed).
3. The repayment structure of this loan type is much more manageable than those of advance cash loans or payday loans. In the case of the latter, the applicant is due to repaying the money on the next payday, installment loans provide a longer time period for this. Moreover, it is you who is to choose to make the payments once or twice a month.
4. If we are to turn to the cons of installment loans, the first that comes to mind is the higher fees.
5. Not only the fees but also the APR rates of installment loans are much higher than those of bank credits. And even though the borrower doesn't notice it at first sight (he pays it back over time), the total repayment sum, in the end, turns out to be much greater than the money borrowed.