What Are Online Loans with Monthly Payments?
An installment loan is a personal loan that you receive in one lump sum and repay in equal monthly installments during the set time. With emergency loans, you can cover various costs, such as:
- Unexpected expenses;
- Medical bills;
- Debt consolidation;
- Car or house repairs;
- Car or house purchase;
- Education costs.
Types of Installment Loans?
Depending on your purposes, you can apply for different types of installment loans.
Personal loans are the main form of installment loans that can be used to pay for various purposes. It can be debt consolidation, paying for unforeseen costs, etc. To apply for such a loan, borrowers need a good credit score. Otherwise, they can be rejected. Personal loans can be both secured and unsecured, so check your loan agreement before signing it.
Auto loans are a type of secured loan where the vehicle you buy is collateral. You get money for a car purchase and repay it in equal monthly installments. If you can’t repay your debt on time, you can lose both a car and money.
High education costs in the U.S. are too expensive for many Americans. For this reason, student loans are becoming increasingly popular in the country. You can get them from federal government programs or private lenders. Student loans allow you to pay for your college and repay money after graduation.
A mortgage is a secured loan borrowed for a house purchase. In such a loan form, a property you buy is collateral. The mortgage repayment period can reach 30 years, but a missed payment can lead to the loss of your house.
Benefits of an Installment Loan
An installment loan can be a great option to cover various expenses. Take a look at the benefits of this loan form to be aware of all its benefits.
Fixed interest rates
Monthly expenses on installment loans are predictable. You pay fixed payments during the entire repayment period. Read carefully your loan agreement to know your monthly payment sum and interest rate.
If you apply through online lenders, your application doesn’t take more than 5 min. Online loan providers require only basic information about you, such as your personal data and bank account details.
Most lenders approve your request within minutes and send money immediately after approval. Therefore, borrowers generally get funds the next business day and sometimes even on the same day.
Can I Get an Installment Loan with Bad Credit?
You can get approved for an installment loan despite your credit score. Several lenders focus on your income instead payment history. However, a credit score can affect your interest rates, and bad credit borrowers generally pay more for a loan.
Can I Get an Installment Loan with No Credit Check?
All lenders perform credit inquiries to ensure you can repay a debt. However, you can find lenders that don’t need your credit report to make a decision and make only soft credit checks.
How Much Do Installment Loans Cost?
Installment loans are cheaper than payday loans. However, in addition to the borrowed sum, you need to pay an APR, which can vary from 16% to 100%, depending on your state.