Installment Loans

Most of us need additional funds at some point in our lives. While some people don’t like the idea of borrowing the money even if they desperately need cash, others realize how helpful taking out a loan can be, especially when you need money urgently or need to finance a big purchase. With the proper information, the chances of getting a deal are much higher, so make sure you are well informed on terms before deciding to take out a loan.

Installment loans are typically considered one of the most affordable loans services you can opt for to get extra money, and they are something you should consider if you are thinking about a home renovation, paying for a wedding or wanting to get a new car. Nowadays, you can get an installment loan online by filling out a credit application. Depending on lender, it can take up to couple business days to approve your credit application. Typically, it takes only one business day to get cash from CreditNinja.

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What Is an Installment Loan?

An installment loan is one of the most popular types of loans where you borrow a set of money from a lender, and then repay it with interest over a series of fixed payments called installments. In certain cases customer may want to use an online installment loan instead of credit card or payday loan. Lots of lenders offer online loan services.

Installment payments are usually made monthly, but they can be made weekly, bi-weekly, or on a different schedule that is determined before taking out a loan from a lender. Make sure to check out the terms of installment loans in advance.

Installment loans are mostly used to cover mid to high expenses such as buying a new house or apartment, not when you need a small amount of cash. These costs are usually too much to handle at once, so getting an installment loan and spreading payments over an extended period can make them more manageable.

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Common Types of Installment Loans

Installment loans happen to be some of the most common types of loans available:

  • Car Loans are used to purchase a new vehicle. Monthly installments are usually paid over 12 to 96 months, although not all lenders issue loans within that range, you need to check that out. If you fail to maintain the repayment schedule, your newly bought vehicle acts as a collateral for an installment loan, and a lender may repossess it. Make sure that lenders provide clarity in terms of payment and especially hidden fees.

     

  • Mortgages are installment loans used for buying a house. They are usually repaid over 15 to 30 years with monthly installment payments. Like with auto loans, your property acts as collateral in case you don’t follow the monthly installment payments. This type of installment loans usually come with lower interest rates since they are considered secured, and some even have fixed payment rates that don’t change over time. Anyway, you always need to stay on the same page with the lender.

     

  • Personal Loans can be used for a variety of purposes, like debt consolidation or paying off sudden unexpected expenses like medical bills. These loans don’t require collateral like your car or house, but this type of installment loans come with slightly higher interest rates.

QUICK AND EASY PERSONAL LOANS UP TO $2500

How Do Installment Loans Work?

Lenders need some kind of security that customer will be able to pay back the borrowed amount of cash, so that’s why some loans come with collateral. Most lenders require that you have a job with a steady paycheck to ensure that you will be able to pay each installment, also your credit score is essential.

Depending on the lender and terms of service, you can make installment payments through automatic monthly deductions from your bank account, direct deposit at the store, or over the phone to repay your loan; it’s up to you to choose the most convenient alternative to repay the debt.

Paying off each installment on time will help you improve your credit score, which can come in handy the next time you are taking out a loan from a lender. A higher credit score means that customer will be able to borrow a higher amount of loan or to negotiate a better interest rate.

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What to Consider When Getting an Installment Loan

Getting an interest rate for installment loan that allows you to make affordable monthly installment payments should be a priority when getting an installment loan. Lenders factor in many different aspects to check and calculate the risk and give you a specific interest rate based on your credit score, income, other debts, debt to income ratio, and your employment. Lenders must be assured that you can repay the loan before offering the service. Sometimes you may want to improve your credit health before applying for an installment loan. You can check your credit score online if necessary. 

Interest rates of installment loans vary depending on your financial situation, but also on the loan terms, which refers to the duration of repayment. While shorter terms typically yield higher interest rates than long-term loans, the amount of interest paid on a short term loan is usually lower, due to less time for interest to accrue. Usually installment loans are more predictable than payday loans and cheaper than cash advance loans. Payday loans can have higher chances for approval than installment loans if you have bad credit.

That is why it is crucial to evaluate your financial situation and figure out what type of loans works best for you. Some people want to repay the loan as soon as possible, while others like to stretch it out due to smaller installment payments. Whichever you choose, make sure it fits your budget, and have an installment you are comfortable paying each month to repay your debt.

Keep in mind that the borrowed amount is fixed (you can get much more flexible terms with credit card or a line of credit), although you may be able to refinance your loan to receive additional funds. CreditNinja does not have penalties for repaying your installment loan early, although some other lenders might charge you additional fees, it’s better to check that before applying for an installment loan. CreditNinja typically allows installment borrowers to refinance.

QUICK AND EASY PERSONAL LOANS UP TO $2500

Benefits of Installment Loans

Installment loans are a great way to improve your current financial situation. These loans come with a simple borrowing process for a consumer, and there are no hidden fees you should worry about.

Once approved for a certain amount of installment loan, you get a specific interest rate for installment loan, and have to pay fixed installments over an agreed period. In term of stability, you always know how much you need to pay each month, and you can plan your budget accordingly to repay your debt.

At CreditNinja, we offer reliable financial support whenever you need it. Our installment loans come with flexible terms and can be used to improve your financial situation quickly and on convenient terms.

You can get your cash in just 1 business day after application approval, so start one today and see what we can offer you.  

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¹Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications approved before 10:30 a.m. CT Monday – Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case, the loan if approved, will be funded the business day after such additional verification is completed.