Installment Loan
Online installment loans allow you to take out one lump sum of money in a cash advance – similar to a payday loan – but allows you to pay it back over several payments rather than all at once (like with payday loans).
Fortunately, today’s lending market offers quick and easy solutions for Americans to get the financial assistance they need, especially in situations where paying off a loan in one lump sum is not a feasible option. In these cases, customers have the option to take out an installment loan that contains a fixed interest rate and regular payments based on the length of the loan agreement.
Anyone who needs money quickly and is building credit* and can make regular repayments, is a candidate for an installment loan.
In most cases, people take out installment loans to cover unexpected expenses that arise, need extra money to cover a specific event or want to pay off credit card balances. But the truth is, what you do with the funds is up to you.
Here are just a few ways you can use an installment loan:
| Unexpected Expenses | The typical use for an installment loan is to pay for unexpected expenses and or emergencies, like medical bills. |
| Debt Consolidation | Installment loans allow you to pay off unsecured debts, such as multiple credit cards, into one, easy-to-manage regular payment. |
| Tuition | Student tuition is very expensive and requires large lump sums of money at time. In this case, installment loans are a way customers can pay for tuition if they do not have the entire amount up front. |
| Down Payments | In most cases, a purchase of a car requires a down payment. Installment loans can be used to cover a down payment for a purchase, giving you an alternative to other, more expensive forms of credit. |
| Home Repairs | Rather than relying on high interest credit cards or depleting a savings account, many people opt to get the money they need to pay for home repairs or improvements with an installment loan. |
Just like every financial situation is different, every online loan lender is different. When shopping for the best installment loan for you, it’s a good idea to compare the interest rate, fees and APR between the loan options. Some things to look out for are prepayment penalties and automatic rollovers. It’s also a good idea to check a loan’s term and payment schedule beforehand.
Since there are so many lenders, which one is best? It’s hard to tell without doing the research. LoanShop can help you find the perfect lender matching to your requirement.