How Installment Loans Might Help You?
So you are going through a financial crisis and running from pillar to post to arrange some money in order to pay off those medical bills. However, whether it’s buying a new home or a car repair or dealing with some emergencies, all of us face certain kinds of financial crunch at some point of time of our lives and we need to seek help of other financial alternatives.
Since loans from bank or credit unions take a long time to be sanctioned and also involve lots of complications and formalities, it’s not quite feasible to apply for them, especially when you are in a hurry. In situations like these, recent financial alternatives like payday loan, installment loan, cash advance credit etc. are quite helpful and they have also become popular with most of the borrowers due to their attractive features.
What are installment loans?
While you have tried out taking cash using your credit card or through a payday cash advance, you can also consider taking installment loans. These types of credits provide you with a specific amount of cash and a fixed period within which you have to repay the loans. Small business bank credits, home mortgages or car loans are the different instances of this type of credit. For instance, if you need $10,000 to buy a car, you can get it at an interest rate of 6%, with a 50 months repayment period. Thus, you would be absolutely aware of how much money you have to pay every month and there would be no surprises as well. Since you know all your exact income and expenses, it would easier to manage your finances as well.
If you are not quite aware about all the attractive features of installment loans, here are they mentioned –
- Fixed rates and competitive variables
- Different types of terms
- Discount on the rates of interest
- Very low amount of loan requests
- Debt protection, available on the different products
- Convenient payment book
There are huge benefits of getting these credits. If you are not sure whether to opt for it or not, first go through its benefits quickly –
- Constant monthly payment – It is not like that you have to pay widely different amounts in the alternative months. You know exactly how much you owe your lender, and accordingly you can arrange all your expenses.
- Fixed repayment periods – If you can’t deal with uncertainty and think that will lead you to further hazards, installment loan would be the best solution for you. Once you sign up for the credit, you are given a fixed period of repayment and you can schedule all your financial planning accordingly.
- Transparency – This is one of the greatest advantages of this type of credit. If you can get the cash from a reputed source, it is most likely that you will be aware of all the minute details like repayment period, interest rate, other kinds of charges like processing fees, early repayment fees etc.