Everything you need to know about this loan option
When you need help paying for an emergency purchase, you have many options to get cash, fast. One of those ways is through an installment loan.
Installment loans are popular with borrowers who need to pay for one-time expenses that require a quick fix or to pay of for other big emergencies. Read more on online installment loans and find the best way to pay for it whether you have good or bad credit. Applying for this type of loan online is straightforward, and the funds will get deposited into your account fast. Plus, you can easily budget your loan payment because an installment loan comes with a predictable payment schedule.
If you’re looking for more information on installment loans, we share what an installment loan is, how it works, how it’s used, and its pros and cons.
Installment loans online: defined
Any set amount loan that you pay back in a series of regular payments over a fixed period goes under the installment loan category. Auto loans, student loans, and personal loans are common types of installment loans. Lenders allow borrowers to pay the loan back bi-weekly, weekly, monthly or quarterly.
When you take out an installment loan, you can benefit from higher loan amounts and longer repayment terms. For instance, you can apply for an installment loan amounting to $15,000 and pay it off in one year or seven years, depending on the lender’s terms.
It’s also important to keep in mind that installment loans come with higher interest rates compared to other types of personal financing. So, make sure to compare different lenders to choose the best installment loan that you can afford.
Purposes of installment loans
Borrowers use installment loans for various purposes. However, it’s advisable that you use it only in times of emergencies or important, unplanned expenses. Here are some of the things that installment loans are used for.
Paying medical bills
An installment loan is a go-to option for people who have no health insurance or who need to pay for medical expenses that aren’t covered by their health insurance.
Paying overdue utility bills
Are your phone, electricity and water bills behind schedule? Installment loans can cover the total cost of these overdue bills.
Buying a car or making auto repairs
If you need to buy a car or have some urgent auto repairs, an installment loan can provide the cash to pay for these expenses, even if you have a poor credit rating.
Improving your credit profile
Getting an installment loan can have a positive impact on your credit score as long as you pay the installments on schedule. However, as mentioned earlier, installment loans come with higher interest rates. If your goal is to build your credit rating, go for credit-building loans that offer lower interest rates.
Advantages of online installment loans
Many borrowers go for online installment loans for several reasons. It’s especially important during this national health crisis. Here are some of the benefits to apply for an installment loan online.
Because installment loan applications are online, you can expect a simple, quick and easy process. The application process will take just a few minutes.
When the personal installment lender approves your loan application, you can access the funds sent to your account within 24 hours.
Higher loan amounts
Another excellent feature of an online installment loan is its higher borrowing limit. So, if you need to take out a large amount of cash to cover emergency expenses, installment loans can take care of your needs.
Flexible repayment terms
Online installment loans can give you the benefit of flexible repayment terms. You can also budget your loan payment because you know the exact payment schedules.
Not strict on credit history
An installment loan is a perfect option for those who want to borrow money but have poor credit history. Most online personal installment lenders don’t perform stringent credit checks. So, even if you have a bad credit rating, there’s a chance that your loan application will get approved.
Disadvantages of online installment loans
While getting installment loans online can be advantageous, there are some downsides to consider.
You can’t add to the loan amount once it’s received
Once your online installment loan is approved, there’s no way to increase the loan amount. If you need more cash, one option is to take out another loan. So, you know precisely the amount you need before you apply for this type of loan.
High interest rates
People who take out installment loans pay higher interest rates. It’s also possible that your interest will increase over the lifespan of the loan.
Fees and penalties
Some installment loans also come with origination fees and prepayment penalties that increase the total cost of the loan. That’s why it’s crucial to compare multiple online lenders to choose the one with the most affordable loan contract.
Greater Alliance can get you cash, fast
If you find yourself needing to pay for an emergency expense or need help with bills to get you through a tough time, consider Greater Alliance’s Fast Cash Loan. It gives you all the benefits of an installment loan, we also offer loans up to $30,000 for qualified borrowers. Apply online for a Personal loan or call 888-554-2328.