When you’re hard-pressed for cash, there are various loan options available that you can apply for. One of the easiest and most accessible possibilities is an installment loan. Wondering what it is and what it has to offer you over other loan types? In this article, we will discuss what installment loans are and how they can be more advantageous than other financing options.
What Are Installment Loans?
Installment loans can be categorized into two main types: personal and commercial. Regardless of the kind of loan, they share the same design. Installment loans are those that borrowers should repay regularly on a scheduled or installment basis. In every payment term, they pay a portion of the principal money they borrowed plus the loan’s interest.
Why An Installment Loan Can Be a Good Choice
Should you decide to pursue this loan type, here are the benefits that you can enjoy:
1: Ease of Application
Lenders do not easily hand their money over to just anyone. Applicants should provide the lenders’ requested documents to prove that they can repay the money they would borrow. This part seems daunting for most applicants, but the experience is different with installment loans. Compared to other financing options, installment loans require fewer requirements.
While each loan provider differs, here are some of the most common lender requirements in the U.S.:
Age: Applicants must be 18 years or older
Citizenship: Applicants must be permanent residents in the U.S.
Email Address: Applicants should have a working and valid email address
Financial Standing: Applicants must have an open bank account with good standing
Income: Applicants should have a steady income that the lender can verify
2: No Exclusivity
Anyone can apply for this loan type regardless of how much they earn or how high their credit score may be. As long as they qualify for the simple requirements provided by the lender such as having a sustainable source of income that speaks to their ability to pay off the loan, they have a high chance of getting approved.
3: Definite Payment
All installment payments are fixed. This allows applicants to budget their money better since they know how much they need to pay for the entire loan duration. It also means that they don’t have to worry about an increase or decrease in monthly dues, despite the inflation or growth of interest rate.
4: Longer Payment Term
If you believe you need time to pay off your loan, that is not a problem with installment loans. The payment term could stretch out depending on what you and your loan provider discuss.
5: Get Your Money Fast
When people borrow money, it is almost always an urgent need. Installment loans are quick to apply for and obtain, especially if you’re looking for something short-term. Some even offer online loan applications to make it easier for their borrowers.
Borrowing money with a scheduled payment is always better than having a revolving credit that you might spend on unimportant things. With installment loans, you have a fixed monthly fee of defined duration. It is a determined expense that would help you avoid overspending or acquiring growing loan interest. At the same time, making monthly payments on time can help you build a positive credit history. Before you finalize your installment loan, make sure you understand the terms and conditions and pay your dues accordingly to avoid future problems.
Should you need small personal loans in Murfreesboro, TN, contact us at Stones River Credit. Our team will review and propose an affordable payment plan especially for you. In Stones River Credit, our client’s well-being is our number one priority. That is why we have a variety of personal loans with no hidden fees to fit your needs. Call us at 615-896-5006 to learn more about our offers.