Looking to buy a house, replace that old A/C, or maybe a new car?
An installment loan is one way of borrowing money to cover your expenses.
Once the lender approves your application, you receive the amount in a lump sum. This is where it gets interesting. In an installment loan, you can repay your principal over a set period, in the form of monthly installments.
Before you look for different installment loan options, it’s essential to familiarize yourself with all the ins and outs.
These loans work a lot differently than the revolving credit, like our credit cards. With credit cards, you can spend as much as you want until you reach your card’s limit.
With installment loans, you receive the entire amount in a lump sum at once and must repay it as per your agreement.
In the case of revolving credits, you can borrow money again after paying the past due amount. However, when it comes to the installment loan, your account is closed once you repay your installments.
For example, let’s say you applied for a $1,000 loan with a 15% interest rate for 24 months.
|Return Period||24 Months|
|Final Borrowing Cost||$1,166|
Let SimpleDirect help you find the best installment loans in the market.
The most common types of installment loans are:
Want to buy a vehicle? It’s time to apply for an auto loan. These loans are secured with your car as collateral. In case you fail on your payments, your car can be seized. You can expect lower interest rates for auto loans in comparison to unsecured loans.
Looking forward to buying a house? Time to seek a mortgage. Here, your home will act as collateral, and if you miss out on your monthly payments, your home will be at risk.
You can apply for a personal loan for different purposes like medical expenses, debt consolidation, home renovation, etc. All you have to do is get in touch with our experts, and we will help you get one with ease.
You can apply for a payday loan to cover your expenses until you receive your next paycheck. However, the interest rates and fees are VERY high.
Want to build a better and brighter future? You can apply for student loans to cover your higher education expenses. A private lender or federal government issues these loans.
|Build Credit||Strict Qualification Requirements|
|Fixed Interest Rates||Some Carry Prepayment Penalties|
|Lower Interest Rates||Less Flexible|
|Fixed Monthly Payments||May Require Collateral|
|Short and Long-Term Loans Available||Inaccurate calculation for principal needs will lead to unnecessary future payments.|
Your credit score will highly impact your best installment loan options. So, before you start exploring different installment loan options, it’s essential to check your credit score.
If you have a good credit score, then you may receive a significantly lower interest rate. If you are qualified or have a 0% interest credit card, then we'd suggest you go with the credit card.
What if you have a not-so-good credit score? In that case, if you have a co-signer with a good credit score, then you may be subject to a better interest rate.
Using your savings account, car, or other assets as collateral may help you obtain a lower rate.
We advise you to opt for an installment loan only if it fits your plan. Avoid adding a financial commitment you may not be able to sustain.
Do you have any current debt? Or any existing loans? Will you be able to manage all of it?
Take into consideration all of these points and prepare a perfect plan for you.
There are tons of different best installment loan options.
If you have any more questions about Installment loans or want to know what your best options are, connect with SimpleDirect today!