An installment loan is borrowing a specific sum today from a lender and repaying back the same with interest amount, in a series of regular monthly payments. It is a great option, when the need for extra finds is more than what cash can provide. These loans let you spend more than what you have in hand. They also have longer periods for repayments than borrowing in cash. This gives borrower a kind of flexibility in deciding how much to borrow and how long they require to pay it back. The borrower can make small payments over a long period of time or can decide for larger payments on a shorter term.
Certifying for an installment loan is a good way to make payment for a car, a portion of college degree or a car. Home equity loans that come in handy for maintenance and repairs of home are also a kind of installment loans. Payday installment loans are a great way of borrowing for a shorter period of time.
How it Works
Here is an imaginary example of how installment loans work. Joe is a marketing assistant at an accounts firm. A few months earlier, she had to go for an emergency treatment and she was off work for that period of time. Although she has medical coverage through her owner, she needs to make a payment of $2,000 towards hospital and surgery expenses.
The surgery bills start to roll in – and by the time all of Joe’s monthly bill payments are made, there is no more cash left over for coverage of deductible. She is now considering withdrawing money from her 401(k) plan when a colleague advises an installment loan. Joe accordingly applies for $2,000 loan with longer repayment term than cash advance, and it provides her with funds she needs. Loan repayment term of six months mean that her monthly payments are small enough to be manageable.
Cost of an Installment Loan
The cost of an installment consists of interest charges and any other fees applicable. The lender’s loan contract should clearly specify about fees and charges. Moreover, it should also have details of late fee charges, which the borrower has to incur for late payment. The charges should be mentioned in dollar amount as well as annual percentage rate (APR) as required by U.S. law.
Eligibility for an Installment Loan
States where alternative of taking installment loans is available, income and credit history is considered to determine eligibility for loan issuance. Moreover information related to verification of income and employment, identification, and account information also needs to be provided by the borrower.
Choice of a Renowned Lender
The choice of an eminent loan provider is important while considering an installment loan. An applicant should go for a lender who provides transparency of rate information provides easy to understand details about its lending and complies with laws. These days installment loans online provide a great way to look for a reputable lender.
Personal Money store provides a hassle free option of installment loans, cash advances, personal loans, short term loans, and payday loans. You can apply for a loan online in less than three minutes. Once approved, the amount gets deposited directly in your bank account. You can check more details on personalmoneystore.com or can visit them for more inquiry at Personal Money Store, # 1825 N, Hutchinson Rd, Spokane Valley, STE 201, WA, 99212 United States.