Installment loans are some of the most common personal loans. When you borrow online installment loans at Personal Money Network, you will be expected to repay in a serious of regular payments. Usually, the loans are repaid on payday. However, some installment loans lenders allow weekly and bi-weekly installments.
The total payable sum includes the principal, interest rates, and processing fees charged by lenders. Depending on the lender and the applicable terms, the repayment period for the loans ranges between a few months and sixty months. Most lenders issue a maximum of $10,000 as online installment loans.
Installments are different from most types of loans as they are subject to fixed interest rates. If your loan application is approved, you can receive the amount in as soon as 24 hours. Therefore, the debt offers quick access to the money you need for various expenses.
Top Reasons why People take Online Installment Loans.
1. Medical Expenses
If you have medical bills and unable to pay, you can opt for online installment loans. The loans are ideal for medical expenses that are excluded in insurance policies.
2. Improving Credit Scores
If you have poor credit scores, you can apply for online installment loans to improve your creditworthiness. Repaying the loans within the due dates will result in better credit scores. Some of the reasons why online installment loans may help you boost your credit scores include having low-interest rates and the fact that good credit scores are unnecessary.
3. Auto Expenses
A car experiences mechanical problems from time to time. If you lack enough money to repair your car, consider taking online installment loans. Usually, the repayment period for installment auto expenses ranges between one to eight years.
Some online lenders may allow you to borrow installment loans for longer periods. However, you will be required to pay higher interest rates. Low-income earners prefer long repayment periods as they repay the debt in smaller installments.
Additionally, you can borrow online installment loans to buy a new car if you do not have enough money in your bank account. The loan will help you to cover the expenses without the need to stretch your bank account.
4. Payment of Utility Bills
Another common reason for borrowing installment loans is to pay utility bills such as electricity and water. The expenses are essential in our homes. The inability to pay electricity bills would mean sitting in the dark.
5. Higher Education
If you are pursuing or have plans to pursue higher education but lack enough money to pay your tuition fees, you should consider taking online installment loans. It is a wise investment as you will be in a higher income bracket after completing your studies.
When you secure a job, you can use installment loans to pay for part-time classes to improve your skills. In most cases, you may be required to make upfront investments, which you may not afford at the time. In such cases, installment loans can be beneficial.
Advantages of Online Installment Loans
1. Flexible Repayments
When you take a payday loan, you will be required to repay the loan in full on your next payday. As a result, borrowers may experience financial strain. On the other hand, borrowers of online installment loans are only required to repay the amount in a series of payments.
Since the interest rates for online installment loans are fixed, borrowers will pay uniform amounts throughout the duration of the loan. You can choose longer payment schedules when applying for installment loans, and this makes them manageable and convenient for borrowers.
Smaller installments means that people can repay their debt and have money to pay for various expenses. You will also be allowed to make early repayments without any penalties, and this helps to manage the debt.
2. Higher Loan Amounts
The longer terms of repayment for online installment loans allow lenders to offer higher loan amounts to their customers. As a result, borrowers get enough money to cater to costly expenses and emergencies.
The larger loan amounts and manageable repayment terms for online installment loans help to reduce the risk of taking several loans to accumulate enough money to pay some unexpected expenses in the future.
3. Fast Approval
The fast approval of installment loans is one of the main reasons for their popularity. Online installment loans can be deposited into your account as soon as the next business day. As a result, you can use the money to cover emergency expenses and repay over a longer period and in small amounts. For example, you can use the cash to cater for expenses such as taking emergency trips.
4. Simplified Application Process
Usually, applying for traditional loans may take weeks, and the application process may be complicated for most borrowers. In some cases, your application may be denied, and you may be unable to cover emergency expenses.
On the other hand, the application process, when borrowing online installment loans is simple. Also, the loans are available at any time of the day and night. Therefore, you do not need appointments to secure online installment loans.
In recent years, banks and other financial institutions have restricted access to loans due to the state of the economy. As a result, most borrowers opt for online installment loans as lenders are more lenient.
Traditional financial institutions prefer lending money to people with perfect credit scores as lending to such people is perceived to be less risky. However, online installment loan lenders allow borrowers with low credit scores to access loans.
The online installment loan lenders do not check the credit history of a borrower before processing their application. The online lenders consider factors such as income levels when determining whether to issue or deny loans.
Finally, online installment loans have many other benefits, and you can use the amounts received to cover various expenses in your home or business. You can apply for online installment loans even if you have never borrowed any other types of loans before. Since the debt is repaid in longer periods as compared to payday loans, they are ideal for individuals who may want to improve their credit scores.