Online installment loans range from small amounts around $200 up to tens of thousands of dollars and are not intended to be repaid in full at the next payday. Monthly repayments are extended over a period of time.
A borrower should consider an installment loan if they have larger expenses or needs as the interest is lower than other unsecured bad credit loans. There are also other types of loans for bad credit like signature loans.
A vital element of online installment loans is your credit score so if you know in advance that you may be applying then you stand a much better chance if you pay attention to this ahead of your cash loan application.
There are plenty of credit score tools online like Experian that can give you this information.
These loans are useful for purchasing more expensive items or services such as building, cars, education, white goods, paying down existing higher interest debt and so on.
Note that it rarely makes sense to borrow to buy a depreciating asset. You should borrow when you use the money to increase your productivity.
If you already have too many quick payday loans you may want to consider using an installment loan. It may work out but longer term you should use a consolidation loan. Green Touch can offer you this excellent service to reduce your existing debts.
Loan repayments are set up in advance so you know the amount you will be repaid with a fixed rate of interest, the payments remain constant and you can calculate what you exactly need to pay back from your next paycheck.
Note that these long-term loans may also carry a higher interest rate than other loan types so it is important to stick to your repayment schedule to avoid penalties and compounding interest on top of interest.
From the time you submit your application until you receive funds can be as low as a few days once your application was successful.
Online installment loans have a long loan duration and lenders are able to offer a higher cash advance loan amount than a short term payday loan
Payments are higher than traditional loans but not as high as a payday loan. Do your homework and compare both as by the time you have repaid in full with all interest and fees it may have been better just to take out a payday loan in the case where you only needed the money for a few weeks.
If you begin to miss deadlines for payments, this can result in larger fees and sanctions that can really increase the cost.
In some cases, loans may be secured on your assets like title loans, if you fail to pay then these can be seized in order to pay off your debt.
So summarizing the above you must think how much you need and for how long you need to borrow for in an almost instant payday loan. Is it for a quick 1 or 2 weeks or do you want to pay back over months?
Obviously, for a larger amount and longer periods, you should probably go for an installment loan with no credit check.
In this case, you are more likely to be accepted for a payday loan.
Can you manage the payments? Be honest with yourself and think if you really need to purchase the required goods or service and can you afford the monthly payday installments.
Take your time to consider all options and remember it’s not good to borrow and to buy something that will not increase your earning power. If you are worried about your credit score, you can check out lenders who offer payday loans with no credit check.