Why Long-Term Installment Loans Are Popular

March 1, 2019 posted by

Unless you’re a millionaire, you’ll likely need to get an installment loan at some point in your adult life to fund some type of important need – whether it’s to get a new car or to pay for a major home improvement. While loans for those things may be called a car loan and home improvement loan respectively, they are still installment loans, meaning they are paid back over time in set monthly payments, hence the word “installments.” But an installment loan could just as easily cover medical expenses that have come up, or even a family vacation.

Advantages to Installment Loans

One advantage to long-term installment loans is the fact that credit is not an issue; all credit types are welcome to apply and can qualify for an installment loan. Beyond that, the approval process can be handled quickly, and funds can be made available as quickly as 24 hours in some cases. The money can be deposited directly into your checking account, making it available to use right away; and installment loans help build credit for those with less than perfect credit.

Depending on what the loan is for, it could be a secured loan, or unsecured one. People with good credit can easily qualify for an unsecured loan, whereas people with less than good credit are more likely to need a secured loan.

What About Interest Rates?

The interest amount charged on personal installment loans can vary greatly – ranging from 5.99 percent all the way to 35.99 percent. Interest rates are determined by several things, including how much of a loan you’re seeking, the state you live in, your credit history, your income, and whether it’s a secured loan or not.

You should also find out whether there is a loan application fee or origination fee, and what that amount is. It could be a flat fee, or it might be a percentage of the amount being borrowed. Ask whether that fee is due at the time the loan is applied for, or whether it can be rolled into the amount being borrowed.

Source of Installment Loans

There are many places you can go to apply for long-term installment loans. One of the first places to start would be with your own financial institution. Beyond that there are many places on the Internet from which you can borrow money. Loan applications are usually simple and straight-forward. Just be sure to read all the consumer information and/or other disclaimers.  And make sure you understand everything before signing anything or accepting the money.

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