installment loans work by providing you with cash and are able to pay it off into manageable installments. This is an unsecured loan that requires no collateral to qualify for, although some traditional lenders may ask for security especially if you desire to borrow a bigger amount.
Most lenders would require that you have a stable job and that you have at least the minimum salary stipulated in their requirements. This will ensure that they will be able to collect the payment each due date without fail.Payments are usually auto-debited from your account. If there are changes with your employment or if you have a hard time paying off the loan, it is advised to talk to your lender immediately to arrange the best payment option for your situation.
On the other hand, you may off the loan early and incur no penalties for doing so.
You need to pay off the loan promptly each due date to help improve your credit score as well as be able to borrow a bigger amount or negotiate a better interest rate with your lender the next time you file for another loan.
You can post the payment of installment loans through automatic deductions from your bank account, personal handing it out at the store, over the phone or ACH, whichever is more convenient for you.
When to Get Installment Loans
Installment loans allow you to borrow a bigger amount and pay it off into smaller fixed installments. Installment loans are best for mid-range to big-ticket expenses that you can’t afford to pay off in one go. You may use these loans any way you see fit – help fund your wedding or vacation; to consolidate debts or pay for major home expenses.
How you wish to spend your installment loans is a highly personal matter and one that even your lender has no control over. However, you need to remember that taking these loans is a long-term commitment and you need to follow through with the payments promptly and regularly to prevent financial complications.
What to Consider When Getting Installment Loans
A lot of factors come into play when taking installment loans and they are often connected with one another.
First, there’s the loan amount. Installment loans are typically available in several hundred to a few thousand dollars. Work out the amount you need and try not to borrow more to keep your loan as manageable as you can.
Second, there’s the interest rate. Most rates for installment loans are fixed and lenders usually compute it as a percentage of the principal amount you wish to borrow. Other factors that may be considered would be the cap on interest rates in your state as well as credit score.
Lastly, there’s the term of the loan. Most installment loans can run between 6 months to five years. You must choose the loan term properly depending on your goals and financial circumstances. If you want to be over the loan sooner, you can opt for a short term but expect heavier installments. The longer the loan term, the smaller the amount that you need to pay but the longer you are locked into the said commitment. If you want to opt out of the loan pay it off early, you are welcome to do so without incurring any charges.
Apart from these, you must also determine your financial readiness to take on the loan payments for the next few months or years and your purpose for needing such a loan. Taking a big loan can also be a big decision and you must first determine all your available options and identify the best ones for your situation.
Installment Loans for Bad Credit
Some borrowers fear that their credit history will hinder them from getting a large-scale loan with low interests. This isn’t entirely true. Even borrowers with a history of bankruptcy and tainted credit can qualify for online installment loans. You just need to provide the requirements and satisfy the conditions of your lender, file your application and wait for the approval.
The Risks of Installment Loans
Installment loans lock you into a payment schedule. Some borrowers just don’t want to deal with a lengthy payment schedule and would rather be over the debt as soon as possible. If this is the case, installment loans may not be the best option. However, if you take an installment loan and would want to pay it off early, most lenders like King of Kash, will not charge you any fee. In fact, paying your loan off early will even save you more in interests!
Late and Delinquent Payments Can Pull Down your Credit Score. If your payments are severely late or delinquent, the lender may turn your case over to third party collection agencies.
This will not just result to more stress of collection phone calls and mails, it can also lead to a poorer credit score. Always strive to pay off your loans and all kinds of debt in a timely manner in order to increase and protect your credit score.
Why You Should Get an Installment Loan
Installment loans simplify the borrowing process. Nothing is hidden behind industry jargon or within the fine print. It’s all out in the open for you to see. You’re approved for a specific amount with a specific interest rate with set payments over a specific time frame. You can, quite literally, get an installment loan, set up auto-pay, and your loan will be paid off with virtually zero effort on your part.
And as we’ve said before, they’re also incredibly easy to qualify for since they’re unsecured loans. Even if you have bad credit, you can qualify for one of our installment loans.
Outside of all that, interest rates keep dropping and loan amounts find more info on this page . There’s really no reason not to get an installment loan if you need some extra cash now.
Get your Next Installment Loan from King of Kash!
While it’s true that you can get installment loans so easily nowadays, you still need to find a lender that will genuinely care and be understanding of you as a borrower. Should you need installment loans, get them from King of Kash.
King of Kash has been providing installment personal loans for decades now, and more than just a business, King of Kash strives to provide the best financing tools and services to their customers. A great and reputable lender works flexibly with your financial circumstances and provides you with the best available options, on top of fast processing, high approval and excellent customer service.