With online installment loan providers popping up all over the place, it can be quite confusing to select one that provides you with the best terms. If you’re not very savvy with finances, you can consult our team of experts. Learn more about installment loans online with Personal Money Network. We help you find the best loan product that is suitable for your needs.
This article covers a few tips that you should keep in mind while evaluating an installment loan and lists out the pros and cons of availing one.
-Figure out your priorities – If you’re in an emergency and immediate approval is what you need, find out which lenders have the lowest approval times. If you have time on your hands, you can browse around and select one that provides you with the most favorable terms
-Ask whether using credit cards makes more sense – While credit cards usually have high-interest rates compared to online installment loans, there may be situations where the opposite is true. In such cases, evaluate your options carefully. Of course, if you have a poor credit score, then online installment loans might be your only way.
-Calculate the APR: APR takes both fees and interest rates into account, thus helping you find out how the loan will actually wind up costing you.
-Go through personal loans as well: If you’re doing things on your own, search for personal loans too. Some of them may have better terms compared to installment loans (but this is rarely the case).
-Compare all lenders: Unless you go through multiple lenders, you might not always be able to score the best loan for your requirements. Compare every detail to find which loan is better for you.
-Do not fall for long term loans – Certain installment loan agencies provide long-term loans at high interest. Although this could lower your monthly repayment by a significant level, you’ll wind up paying 2x times the money you borrowed. Smaller installments are not always the cheapest ones.
Speed – Is it possible to get your loan amount immediately? While fast loans are sometimes expensive, if your cash requirement is extremely urgent, you might not have a choice.
Loan Terms – This will decide how long you’ll be stuck repaying your loan. Your interest component will also be determined by this factor. While longer-term loans may look manageable, the interest component can make it extremely expensive. Go for the shortest loan you can get. If you pay back the money soon, you’ll be able to save significantly on interest.
Fees – Do check whether there are any fees applicable for availing the loan. Other additional fees must also be taken into account, like late payments.
Interest rates – Stay away from lenders who won’t state all expenses upfront. Learn what your APR is likely to be before you send in an application.
Loan amount – Are you sure that you will be able to repay it back? Don’t borrow any more than you need since that could cause you to become more vulnerable to financial distress in the future.
Using the services of the experts for installment loans online with Personal Money Network can help you save a lot of headaches related to online installment loans since they provide information about the best loan deals straightaway!
Are online installment loans the best choice for you?
Let’s take a look at the pros and cons.
-Quick Turnaround Time: Online installment loan providers process applications at a quick pace. If your request is approved, you can expect to be issued the loan the very next day.
-Applicants with bad credit are accepted: While conventional loans have strict criteria for lending, online installment loan providers will almost always sanction your application, provided you prove that you have an income source. Bad credit is not an issue for them.
-A flexible repayment structure – Unlike cash advance loans or short-term loans, which have to be repaid at once in a short period of time, you are free to pick a longer payment term for repaying your installment loans. Lenders allow you to even make payments at your convenience, thus freeing up your finances. You can establish a calculated budget and pay it off slowly, instead of worrying about a lumpsum payment.
-Loan costs: Online installment loans have a high APR, which means that you could wind up paying a lot more compared to other kinds of loans.
-Fees: These loans also charge more fees compared to conventional loans, thus increasing the amount you need to pay back.