Installment Loans Online
What are installment loans?
How do installment loans work?
Installment loans can be collateralized or non-collateralized. It depends on the kind of loan you’re taking. For example, mortgages and auto loans are always collateralized. It means that in the case of non-repayment the lender can seize your property.
However, many types of installment loans (usually not involving large sums) don’t require collateral. But keep in mind that you will need to have a good credit score and a constant source of income for approval.
One more important fact: the interest rate of non-collateralized loans is higher as it’s riskier for the lender.
Which statement about installment loans is not true?
What are some examples of installment loans?
– Auto loans
– Personal loans
What is the difference between installment loans and payday loans?
Payday loans are technically a type of installment loan but with a much shorter payment term (until the next payday), high interest rates and no credit check required. Generally people apply for it when they’ve already spent their monthly income and need fast money.
Pros of payday loans:
- No checking. You don’t need to worry about your credit score.
- No collateral. Your property is not involved and can’t be seized in case of non-repayment.
- Easy approval. Since the lender is not checking the background of the debtor, the approval process is much easier than with the other types of loans.
It can be a good choice if you have a bad credit history and don’t need a large amount of money. Typically you can’t get more than $1000 with a payday loan. However, you should be 100% sure that you will be able to repay the debt on time. Otherwise a little debt can become a huge problem because of its high interest rate (around 350%-400% APR). Usually lenders allow to rollover the loan but with even more interest fees. So think through everything before applying for a payday loan.
Personal loans are a better option if you have a normal credit score. You can get the money you need and repay it with an equal monthly payments.
Pros of personal loans:
- Low interest rate. Compared to payday loans, personal ones offer decent interest rates (6% up to 36%).
- Large amounts of money. You can get up to $100 000 as a loan if you have appropriate income and good credit history.
- Fast approval. Many online lenders offer fast personal loans. You can apply for it and get the answer on the next day.
If you still don’t know what’s better for you, just check your credit score and look through the terms and conditions of getting a personal loan from some popular lenders. If you can qualify, then it’s definitely a better option than a payday loan.
Where can I get an installment loan?
How many installment loans can you have?
Contact us to get a personal loan online
Still having second thoughts?
With us you won’t need to wait for the approval of the personal loan for weeks. We can help you to get the cash you need in a secure and fast way. Fill in the application now and get the money in 1 day!