When you need money in a pinch, you may find yourself looking at all kinds of different options. There are many ways of getting money when you need it, if you don’t necessarily have cash of your own on hand to cover unexpected expenses. Some people rely on credit cards to help them through trying times, but not everyone has a high credit limit.
So, what does one do when they need to get cash fast? Taking out a loan is an idea that may come to mind, as there are many loan companies out there that are willing to work with people who are strapped for cash and need money now. Payday loans are a type of loan that many people opt for, but they require the full amount to be paid back quickly.
This is where looking for installment loans online can come into play, since getting installment loans can help people who need a set amount of money, but may not be able to pay it back all at one time, unlike payday loans. So, how do installment loans work, and how do you find the best loan for your situation?
What Are Installment Loans?
Installment loans are pretty simple to understand, and are actually the most common type of loan that people opt for. Instead of borrowing money and then having to pay the entire sum back in a period of days or weeks (this is how payday loans work), installment loans allow you to pay set amounts of money on monthly due dates.
Installment loans allow you to decide how much money you need, instead of the lender assigning you a credit line. Installment loans can be as little as a few hundred dollars, to up to tens of thousands of dollars.
In fact, chances are you may have already dealt with some type of installment loan in your lifetime (if you’re not dealing with one right now), because auto loans, student loans, and even mortgages all qualify as different types of installment loans. You borrow the money you need, and you pay it back in increments over a set amount of time.
The Various Types of Installment Loans
Installment loans come in various forms, each with their own fees and interest rates that you will find in the contract associated with the loan. No matter what sort of installment loan you are looking for, the chances are high that you will be able to find a reputable lender online who will be able to get you the money you need at affordable rates that you can pay back over time.
- Personal Loans
A personal loan is an installment loan type that isn’t nailed down to a specific niche, such as getting a loan for a car or affording college tuition. With personal loans, folks can borrow larger amounts of money when an unforeseen circumstance comes up, such as medical expenses or something else. They are also frequently used as a way for people in debt to consolidate and manage their debt easier.
Usually coming with higher interest rates and fees than other types of installment loans, personal loans will usually have a payback period of several years, since the amount borrowed is usually on the higher end.
- Auto Loans
Auto loans are well known by anyone who has ever had the need to get a new car from a dealership. These loans usually will cover the cost of a vehicle, and will then be typically repaid over a period of one to three years, with monthly payments usually being $200-$300 per month depending on the amount borrowed.
Mortgages are a type of installment loan designed to help people purchase a home. Since a home purchase typically involve very large sums of money, the payback period is usually somewhere in the range of 15 to even 30 years, with fixed monthly payments and interest rates.
Installment loans come with a few benefits to help borrowers:
- The payments are predictable each month, helping borrowers budget to meet their monthly payments.
- There’s an installment loan for almost any situation, whether you need to make a large purchase or just need to cover some unexpected expenses.
Money When You Need It
When you need a sum of money and would like the comfort of being able to pay it back on a fixed monthly schedule, then there aren’t many options around quite like getting an installment loan from a reputable lender online. You won’t have to worry about paying the whole thing back at once, and you can borrow as little or as much as you need to, for almost any situation you find yourself in.