Installment loans are typically used for emergency expenses like car repairs or medical bills. Some borrowers also use personal installment loans to help with monthly bills, rent, paying other debts, and more.
A personal installment loan is often seen as a good alternative to other less reliable short-term cash options. It’s a loan designed for borrowers who have less-than-perfect credit scores. These borrowers typically have to rely on other types of quick cash options like payday loans, title loans, and pawnshop loans. A personal installment loan is generally a safer, more flexible, and more affordable option.
There are a number of different types of installment loans, including mortgages, auto loans, and any other loan that is repaid in several monthly installments. For the purposes of this article, we’re referring to “personal installment loans.” A personal loan is any loan a borrower uses specifically for personal reasons rather than business or commercial purposes.
If you’re in need of some fast money and you’re considering a personal installment loan, it’s important for you to know how they work. First, it’s an unsecured loan. This means that you can get one without offering up any collateral. You’ll either be approved or denied based on your borrowing history, income, credit score, and ability to repay the loan.
These loans also tend to offer borrowers more money than payday loans. Depending on the laws in the state where you live, and your borrowing history, you could be approved for several thousand dollars in some cases.
If approved, you may be able to get more flexible repayment options than other short-term loans. Ultimately, it depends on the lender and what they’re willing to offer you, but you may have up to a couple of years to repay the loan.
The most important thing to remember, as with any type of loan, is that you need to be 100% sure you can afford the payments and pay it off in full by the agreed-upon due date. Late fees can add up quickly, and not paying your loan off by the due date can have financial consequences for years to come.