What is an Installment Loan?

So Many Types of Loans to Choose!

So you need some extra cash to cover a few personal or business expenses.  You go online to check out loan rates, and that’s when it becomes perfectly clear.  There are way too many types of loans out there.  Between Payday Loans, Title Loans, Small business loans, credit lines, unsecured loans, and all of the other names getting thrown around how do you know what do you choose?  You have two options, trust the person selling you the loan, or do your research and find out which loan type you feel fits your situation best.  We will not go over all of the loan types right now but rather highlight an option for people with lower credit scores who need more than just a payday loan.

Let’s Talk About Installment Loans

The type of loan I want to talk about is called an Installment Loan.  Installment loans make it possible for people with less than perfect credit to get a larger, longer term loan.  This makes installment loans perfect for someone whose credit is sort of crummy but they may need a loan for more than a couple of hundred bucks.  For instance if you are trying to start your own business and could use financial help for supplies you could probably use a couple thousand dollars not a couple hundred.  Or if your home or car needs repairs a payday loan just won’t cut it, and with payday you will have to pay off your loan fast or get charges.  With installment you can take months or a year to pay off your loan, this means that the next week you won’t have to go get another loan to help you pay off the loan you just got.

Here’s How it Works

The way these loans are set up is, when you apply for your loan you will get a loan agreement, and with your loan agreement you will receive a payment schedule.  Each month you will have a set payment amount to pay until your loan is fully paid off.  The monthly payment amount is a minimum payment; this means that you can pay more than the suggested amount each month.  Paying more than your payment amount each month will shorten the term of your loan and result in a lower amount that you will have to pay by lowering the amount of interest you end up paying if you use the minimum payment amount.

Look for A Secure Site

So now if you have crummy or excellent credit you now have a pretty decent loan option to cover small to larger expenses.  Remember that when you are searching for a loan online always check to make sure you are on a secured website and it is a legitimate business.  You can do this by first, trusting your instincts, and secondly by checking for a secure site badge and the https:// at the beginning of the URL if you are filling out an application, this lets you know you are on a secure page.  And always remember to borrow responsibly.

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6 Comments

  • Sandy Elliott says:

    There are no secure legit site the ones online always come with people that barely speak English with names like john smith. Wow really john smith? People like me with poor credit do not get approved for installment loans unless they are sky high payments and even then they expect you to give them a months payment in advance. Thank you for your advice but poor credit is just that poor credit regardless how it got that way. You have no choices.

  • tr says:

    Having trouble with info being deleted ie. SSN, when submitting applications for mt Courtney and city cash any help?

    • Most of the application forms on loan sites have verification checks and security precautions. Suppose you were typing your street name and you live on Maryland but instead you type Martland. That’s an easy mistake to make, the y and t are side by side on the keyboard. Mistakes of these kind will not pass the verification checks and may cause sensitive data such as your SSN to be erased from the form, on many forms a mistake will result in all of the information that you typed to be erased. That’s so frustrating to have everything disappear when it’s such as easy mistake to avoid. It’s important to review all of the information that you have typed to make sure that it is accurate and free of mistakes.

  • Curtis w Sibby jr says:

    Yes I would to apply for an installment
    loan I’m trying to expand my buisness
    an need to do some equipment upgrades
    fast