Here is a simple fact of life: you cannot predict a crisis or emergency. If you suddenly fall on hard times, then an installment loan may be just what you need to get out of it. You may have lost your job, your car may have broken down or you may have an expensive medical bill, for instance. Either way, you are not the only person who finds that they don’t have the savings to cover this type of emergency. Luckily, installment loans are there to help you out of this situation.
Installment loans are there to help you get through difficult times. These loans are very similar to payday loans, with a few differences. With a payday loan, you must pay the loan back at your very next payday, often just two weeks later. Additionally, you will need to pay the full loan principal plus interest back. With an installment loan, you will actually pay your loan back over a slightly longer period of time, not unlike traditional loans in other words.
Loans for Everybody
If you turn on the news, it is likely that you will see some sort of report on predatory lending practices of payday lenders. The financial services are constantly telling us that these loans serve no purpose other than increasing someone’s debt. This is where installment loans come in, however. You know when you have to pay back which amount and it is clear from the word go what you will actually be paying overall. This takes quite a lot of pressure away.
No Credit Checks
One of the things that attracts people to payday loans is that they don’t require you to pass a credit check. The same is generally true for installment loans as well. With most traditional lenders, you will only be able to get a loan if you have good credit and strong collateral. This basically means that almost nobody can still obtain this type of loan. With installment loans on the other hand, your credit score is not so important. This is because the loan amounts are quite small and the repayment periods quite short, which means you should have no difficulties in making repayments.
Speed Is of the Essence
Another great benefit of installment loans is that you can be approved for them in just a few minutes and that the money can be in your account by the very next business day. This means you don’t have to stand in queues, complete unnecessary amounts of paperwork or spend hours and hours sitting by your phone to find out whether or not you got your loan.
If you find that you have hit a period of financial difficulty, installment loans may be just what you need. You can apply for these without having to worry about your credit score. Furthermore, they are far more convenient than payday loans, which can be very difficult to pay back. Installment loans are practical and easy to get and can really help you out.