Personal Installment Loans — All You Need To Know
An installment loan is a general term for various loans that imply repaying with regularly scheduled payments over a fixed period and, in most cases, with fixed interest rates. Thus, installment loans can be either personal or business, secured to unsecured, and significantly vary in amount and repayment terms. Examples include mortgages, student loans, auto loans, home equity loans, etc.
A personal installment loan, with which the term itself is foremost associated, is one of the most common types of such loans. It is not tied to some specific purpose. Getting a personal installment loan, a borrower receives a lump sum of money they can use for anything they need and makes equal monthly payments (including interest and a portion of the principal) throughout the life of the loan.
Due to its flexible repayment terms and lower APR than payday loans, an installment loan can be an excellent choice to finance a large purchase or consolidate other debts.
Finding The Best Installment Loan Organization In 2022
Regardless of the loan type, its terms largely depend on a particular lender. So, finding the best lender to fit your situation appears to be the first and foremost important thing when taking out a loan.
As a rule, shopping around for a loan takes some work and can be time-consuming. Luckily, MoneyASAP.com has a solution. Although we are not a lender and cannot provide you with a loan, we can help you connect to one of the vetted direct lenders in our broad network quickly, easily, and for free.
Whether you're looking for a payday advance or long-term installment loan, our loan providers can offer various borrowing options for all kinds of credit scores.
Just follow these simple steps to access online installment loans from trusted lenders without any hassle:
- Fill out an online form at MoneyASAP.com, providing the details a potential lender may need to offer you a loan (including your contact information, credit score, desired loan amount, etc.).
- Wait for your formal loan offer. Typically, it takes just a few minutes to connect you to one of the lenders in our network.
- Once a lender responds, read the proposed loan terms. Be sure to examine the loan repayment period, the interest rate, APR, any fees you might be charged, and other crucial conditions that may apply.
- If you agree to all terms outlined in the loan, accept the offer and receive your money as soon as today. The lender will transfer the funds into your bank account.
That is how MoneyASAP.com facilitates connecting a borrower with a potential lender, making this process fast and convenient for you. With MoneyASAP.com, you can submit your loan inquiry at any time, round-the-clock, and without excessive paperwork.
Monthly Installment Loans — Pros And Cons
Different loan types are tailored to different purposes and circumstances. Let's consider the installment loan features in more detail to determine if it best suits your needs.
So, the primary advantages of installment loans include:
- Predictable monthly payments. Installment loans usually have equal monthly payments and fixed interest rates, making it easier to manage your budget until the loan is paid off.
- Relatively low interest rates. If compared, for example, to revolving credit or payday loans, monthly installment loans have lower interest rates. That is why they are often used to consolidate an outstanding credit card debt or cash advance loan.
- Flexibility. Installment loans are flexible in terms of loan amount and repayment time. Depending on a particular borrower's needs and abilities, monthly installment loans can vary from $1,000 to $100,000 and from 12 to 60 months.
- Allows to improve your credit. On-time payment history on the credit report reflected in your credit score unlocks opportunities to qualify for the best loan terms in the future
However, it is worth noting that:
- Monthly installment loans may come with additional fees, separate from the loan interest rate. These can include application processing fees, origination fees, late payment fees, and even prepayment penalties.
- In each case, personal installment loan terms are primarily based on the borrower's credit score, as personal loans do not imply collateral. Therefore, you may not get favorable interest rates and APR or a large personal loan if you have below-average credit.
Payday Loan vs. Installment Loan
A payday loan or cash advance is a short-term unsecured loan for up to $1000. It must be repaid in one payment, usually within a couple of weeks or once a borrower gets their next paycheck.
Unlike a payday loan, repaying an installment loan involves at least two regularly scheduled payments. So, installment loans are for larger amounts of money and have a more extended repayment period. Besides, they typically offer more favorable interest rates but require a higher credit score to qualify.
However, even though payday loans are generally considered the easiest to get, with the help of MoneyASAP.com, you can apply for both payday and installment loans online effortlessly.
Installment vs. Revolving Credit
The principal difference between revolving and installment credit is that the first is an open-end credit, while the latter is a closed-end credit. This means that, unlike installment loans, revolving credit (like credit cards) does not provide you with a lump sum of money that must be paid back until the due date.
Instead, you access money within the set credit limit. Thus, you can use money repeatedly without taking a new loan, as long as you make mandatory minimum monthly payments for each pay period when the balance is not off in full.
However, unlike installment loans, the interest rates are not fixed but vary from month to month, depending on the unpaid balance. So generally, revolving lines of credit tend to have much higher interest rates than installment loans.
Types of Installment Loans
Although installment loans can be divided into auto loans, student loans, mortgages, and personal loans, the loan purpose is not the only criteria for which installment loans differ from each other. Let's consider the most common borrowers' requests regarding personal loans that MoneyASAP.com can help to deal with.
Pre-approved installment loans
While a regular loan implies that a borrower reaches out to a lender for a loan, a pre-approved loan means that the loan provider offers a certain loan to a customer before they apply.
So, a pre-approved loan is a kind of "finished loan product," typically offered to borrowers with good or higher credit scores, an invitation to apply for a specific loan amount under specific terms (interest rate, APR, etc.) that is available for a limited time.
Installment loans with a cosigner
Taking out an installment loan with a cosigner means involving a third party whose credit score is very good or excellent to boost your loan approval odds if you have poor credit or no credit history.
This third party (usually a borrower's close friend or family member) applies for a loan jointly with a primary borrower, signs all the relevant documents, and thus takes equal responsibility for repaying the borrowed money.
Installment loans for federal employees
Federal employee loans are installment loans designed for government workers to provide them fast access to the money they need, whatever their credit score.
As a rule, allotment loans for federal employees are unsecured and do not accrue interest. The qualified borrowers can repay such loans through their payroll system, i.e., the installments are automatically deducted from their monthly salary.
Tribal installment loans — the best option for bad credit
Tribal loans are provided by lenders based on tribal lands or owned by Native American tribes. As they are protected by tribal sovereign immunity, such lenders can set their terms and rates regardless of state and federal regulations.
Installment loans from American Indian Tribes' direct lenders are typically short-term online loans known for their relaxed qualification requirements. Despite the high interest rates, bad credit borrowers often opt for tribal loans as the fast and almost guaranteed source of financing.
Credit-builder installment loan
A credit-builder loan is a reverse form of installment loan, meaning that a borrower does not get the borrowed money upfront but makes payments into a savings account over a set period of time to receive the funds.
As the name implies, such loans are designed for people who do not have a credit score yet to help them establish a credit history but can also be used to improve their low credit score. Therefore, a credit-builder loan does not imply a traditional credit check. You just need to show you have enough income to make payments.
No-credit-check installment loans
All reputable licensed lenders must perform a credit check to determine your credit risk when you apply for a loan. Credit check includes considering a borrower's credit score, credit history, i.e., their borrowing and repayment activity, any outstanding debts, and even closed credit accounts.
Some people may wonder whether they can get a no-credit-check loan. However, it is legally unacceptable. Although some lenders welcome borrowers with any credit scores, they still run a formal credit check.
Guaranteed Installment Loans for Bad Credit: Things To Know
Bad credit usually refers to an individual's history of failing to pay loans and debts in time, and thus, the likelihood of an irresponsible attitude toward their financial obligations in the future. The level of such potential risk is defined by credit check and reflected in credit scores, where any credit less than 580 is considered bad or poor.
Despite popular belief, you can still apply for a personal loan with a credit score below 610, albeit with some limitations like fewer loan options, higher interest rates, or a lower loan amount. In particular, you can use MoneyASAP.com to access a vast network of vetted direct lenders, including ones focusing on providing bad credit loans.
Although no direct lenders can offer guaranteed installment loans not only for bad credit but for any borrower (as any loan provider must perform a credit check as well as consider your compliance with the rest of the requirements), with MoneyASAP.com, the chances of getting your poor-credit loan are pretty high.
Online Installment Loans — Can A Direct Lender Guarantee An Instant Approval?
Many people in urgent need of money rightly believe they should seek installment loans from direct lenders to avoid undue delays associated with addressing brokers or other intermediaries. However, this still doesn't mean that a direct lender can guarantee instant funding for installment loans. The thing is that any reputable lender must review a particular loan application and run a credit check to decide whether to approve a loan, which anyway takes some time. It is essential to be vigilant while looking for installment loans with easy approval. Some not really reliable loan providers like to promise guaranteed instant approval with no credit check at all.
On the contrary, we in MoneyASAP are not big fans of big pronouncements that actions can't back. The vetted direct lenders in our network strive to provide same-day installment loans whenever possible, but they cannot approve any borrower before evaluating a specific loan inquiry.
Legit Installment Loans Near Me — Better Get One Online
When you need money fast, you probably want to know where you can get installment loans nearby. But "right here" is always the closest place, isn't it?
There is no need to search for "installment loan places near me," as with MoneyASAP.com, you can easily apply for a loan from the comfort of your home, 24/7. All the online direct lenders in the MoneyASAP network are vetted before joining our online service and are as legit as traditional lenders like banks or credit unions. Besides, MoneyASAP.com can be an excellent response to the "installment loans for bad credit near me" request because, typically, online lenders are more likely to work with below-average credit scores.
Just complete our brief online form, and we'll connect you to one of our lenders in a few minutes. Using MoneyASAP.com, you can have your request funded in one business day without effort, annoying paperwork, or intermediary fees.
Installment Loan Calculator — Find A Lender And Get Your Loan Offer
A loan calculator is a tool some lenders provide to help a borrower determine the monthly payment for the installment loan or the amount of time needed to pay back the loan, based on the loan amount and applicable fixed payments.
Although MoneyASAP.com does not have its loan calculator, as we partner with many direct lenders with different terms and rates, this does not mean you'll have to accept the loan blindly.
Once you complete an online form at MoneyASAP.com, one of the lenders from our network will respond to you with a detailed loan offer. You will be able to familiarize yourself with the loan terms, including the loan size, repayment schedule, applicable interest rate, any processing, late payment charges, etc. At this stage, you may either approve or decline the loan and go through the process again to find cheap installment loans. The MoneyASAP services are always free for all users, regardless of the number of repeated requests.
F.A.Q.
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What is an installment loan?
An installment loan is a loan you get in a lump sum upfront and then need to pay back over a set period with regularly scheduled installments. Installment loans may vary significantly in terms and amounts. They include personal installment loans, student loans, mortgages, home equity loans, and car loans, i.e., they can be used for almost anything. Although each particular loan's terms depend largely on the lender, most installment loans come with fixed rates, making them easier to budget for repayment.
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How do installment loans work?
Taking out an installment loan, a borrower receives a fixed amount of money. This money must be repaid on the due date, not with a one-time payment, but with smaller regular installments throughout the loan.
For each of these scheduled payments, a borrower must pay the interest on the loan, as specified in the loan offer. In most cases, installment loan interest rates remain unchanged from the time of borrowing until the debt is paid in full.
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What is a personal installment loan?
A personal installment loan is an unsecured installment loan. Unlike car loans, mortgages, etc., it is not tied to any specific purpose and can be used to finance almost any large purchase. Depending on a borrower's credit score and a particular lender's terms, a personal installment loan can range from $1000 to $100,000 and feature repayment terms up to seven years. Applying for a personal installment loan with the help of MoneyASAP.com, you can get up to $5000 as soon as today.
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Are payday loans installment or revolving?
A payday loan is a small personal loan that does not require collateral. Taking out a payday loan, you receive a lump sum of money, which, unlike installment loans, must be repaid in a single payment one the date you get your next paycheck.
Thus, a payday loan is neither revolving nor installment. Although it has similarities with installments loans, as they both are closed-end loans, a payday loan sum does not get divided into several payments (i.e., installments).
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Is credit card installment or revolving?
Yes, a credit card is a popular form of revolving credit product.
As an open-ended credit, revolving credit automatically renews within the set spending limit once the balance is paid in full.
However, if a borrower cannot afford to pay the debt in full, they will have to make at least minimum monthly payments and pretty high interest on the unpaid balance to continue to use a line of revolving credit.
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Is a credit card an installment loan?
No, credit cards belong to revolving credit. Unlike installment loans, credit cards do not have the due date when the debt must be paid back. Instead, you can use the borrowed money repeatedly within the specific limit, without taking out a new loan, as long as you pay the balance off in full.
Another critical difference is that installment loans usually come with fixed interest rates, and revolving credit implies that interest rates (and thus, mandatory monthly payments) vary from month to month, depending on the unpaid balance.
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Is a small business loan installment or revolving?
Regarding financing options for startups and small businesses, you can choose among various loan options to grow your business or buy the necessary supplies, equipment, and more. Although taking out an installment loan to cover your business expenses is one of the most common choices, you may also opt for revolving credit (so-called business lines of credit).
Besides, you may consider a government Small Business Administration (SBA) loan focused on helping underserved small businesses.