Most of us need additional funds at some point in our lives. While some people don’t like the idea of borrowing money even if they desperately need cash, others realize how helpful taking out an online 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 installment loans online with almost instant approval by filling out a credit application. Depending on the lender, your credit check can take up to a couple business days to approve your credit application. Typically, it takes only one business day to get cash loans from CreditNinja.

What Are Personal Installment Loans?

A personal 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 a customer may want to use an online installment loan instead of using credit cards or payday loans. Lots of lenders offer online installment 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.

Personal installment loans can be used to rebuild credit or cover mid to high expenses such as buying a new house or apartment, even if you have good credit scores. These costs are usually too much to put on a credit card at once, so getting an installment loan and spreading payments over an extended period can make them more manageable.

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 monthly installment loans used for buying a house. They are usually repaid over 15 to 30 years with monthly payments. Like with auto loans, your property acts as collateral in case you don’t follow the regular 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. This personal loan doesn’t require collateral like your car or house, but this type of installment loans come with slightly higher interest rates.

How Do Installment Loans Work?

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

Depending on the lender and terms of service, you can make installment loan 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.

On-time payments will help you improve your credit score, which can come in handy the next time you are taking out an installment loan from a lender. A higher credit score means that a customer will be able to apply for a higher loan amounts and a better term loan. Maximum loan amounts and specific terms may also vary by state.

What to Consider When Getting an Installment Loan Online

Getting an interest rate for installment loan that allows you to make affordable monthly payments should be a priority when getting an installment loan. Online direct lenders factor in many different aspects during their hard inquiry 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 you decide to apply for an installment loan. which will limit your interest rates You can check your credit score online if necessary prior to applying for loans. 

Interest rates of installment loans may vary depending on your financial situation, but also on the loan terms, which refers to the duration of repayment. While short-terms installment loans typically yield higher interest rates than long-term installment 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 needs 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, short-term or long-term financial needs, and have an installment you are comfortable paying each month to repay your debt.

Keep in mind that the borrowed loan amount is fixed (you can get much more flexible terms with a credit card or a line of credit), although you may be able to refinance your loan to receive additional funds depending on your financial needs. 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 installment credit. CreditNinja allows some installment loan borrowers to refinance.

Benefits of an Installment Loan

Online installment loans are a great way to improve your current financial situation. These fast 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, 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 speedy cash 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 loan in just 1 business day after application approval, so start one today and see what we can offer you.  

Frequently Asked Questions

CreditNinja offers quick and reliable personal loans for borrowers in need. The entire process is online, from the application to funding, and even repayment. Apply today for a CreditNinja personal loan in Houston, get a decision right away, and get the cash you need to get your life back on track.

CreditNinja personal loans in Illinois are designed for borrowers with less-than-perfect credit. While we do consider an applicant’s credit history, it’s not the only factor we review. This means that having a low credit score doesn’t necessarily bar you from being approved!

You can get the quick cash you need by applying at CreditNinja.com. The application is fast and easy, and you’ll get a decision right away. If approved, you can get your money by the next business day.¹

The length of your repayment term and the amount of payments will depend on the specific loan you receive, as well as the state where you live. This may range from six to 18 months, with one payment every month.

While it’s only possible to have one loan at a time, you’re more than welcome to reapply for another loan once you’ve paid off your current one.

What our borrowers are saying