What Are Installment Loans?

Are you looking for a minimal amount of funding but have no interest in utilizing a payday loan? Have you ever looked into installment loans?

What are installment loans?
An installment loan is similar to an unsecured loan, but with shorter terms. Typical terms for installment loans are 24 - 36 months. No sort of collateral is required to achieve financing. In addition, unlike secured loans that often have an adjustable rate, unsecured loans encompass fixed rates. So, if you apply for a $10,000 loan with a three year term, your monthly payments are going to be interest plus principal divided by 36 months. Your payments are going to be the same every month.

What are the costs for these types of loans?
The interest rate is the cost of the loan and will be determined once an approval is generated. If approved for an installment loan, your lender is required by the Federal Truth in Lending Act law to present to you the terms of the loan, the rates and all costs associated with the loan prior to you executing the loan documents. Each lender has different loan terms, such as the loan amount, the APR for the loan, repayment schedules, etc.. Make sure your understand all costs and terms associated with your loan prior to executing your agreement.

In conclusion...
Installment loans provide excellent borrowing power. However, there are certain kinds of installment loans offered by rent-to-own and retail stores that you should steer clear of. These types of loans are very expensive and will hurt your credit.


Related Reading:
-Maximizing Your Borrowing Power With a Strong Credit Score
-Tips For First Time Borrowers
-Getting Approved for Favorable Bad Credit Loans
-Are Online Loans Safe?
-Advantages of Online Loans
-Understanding Interest Rates
-Impact of Defaulting
-Unsecured vs. Secured Loans
-Tips For Reducing Common Types of Debt
-Advantages of Personal Loans
-Loan Aspects to Avoid
-Downside of Signature Loans