In the real world, getting a loan for supporting your expenses in times of financial need is very much common. Almost everyone is well known for the concept of loans. Be it a traditional loan or the online one, people are always in search of a loan that might provide them with the best facilities and be lighter on their pockets. If you too are searching for a suitable installment loan online then, this is the article that will answer all your questions regarding installment loans and will also find you the best installment loan provider.
What are Installment Loans?
Installment loans are those financial borrowing done with already scheduled payments known as installments that are made for the repayment of the loan. Everyone is well known for the concept of loans and installment loans are just loans with pre-decided installment amounts for the repayment offers. It provides the user with a fixed amount and prepares a schedule of payments that the borrower needs to pay accordingly over a period of time.
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This explains the basic concept of installment loans. Let’s now get some more detailed information about it in the further part of the article.
Pros and Cons of Installment Loans
Although installment is beneficial for people who require financial assistance, there are some advantages and some disadvantages that a person should know before going for an installment loan. Let’s have a quick look at them.
Here are some of the benefits that you get from installment loans online:
- Through installment loans, you can cover a large number of expenses. This helps you with purchases that require a big amount as not many loan providers provide such a big amount as installment loans. It is also a platform where you get matched direct lender online installment loans with instant approval.
- Flexible financing is something that makes it very beneficial for the user. It allows the user to refinance if there are certain changes in the interest rate or credit score. This allows the monthly payment to be lesser due to the refinancing.
- The next advantage is what an installment loan is all about, it allows you to know what your payments are according to your installment amount. This helps in managing and maintaining one’s financial balance. Other than this some of the providers also offer online installment loans with no credit checks which is very helpful for people with a bad credit score.
There are certain advantages but it might also have a few cons that should be kept in mind. Let’s get into all those disadvantages that come with installment loans online:
- Payment terms can sometimes come with issues like penalties for early payment which is a very disturbing thing for the lender as it prolongs the repayment period even when you can make an early payment. So, make sure to look out for such terms before agreeing to them.
- Not flexible to add up an extra amount to your existing loan if you need some more than the already taken amount.
Different Types of Installment Loans
Under the category of installment loans, there are other different types of loans. Let’s discuss each of those to have a piece of detailed information about installment loans and all the different types that it provides:
This is the type of installment loan online that offers you a loan for any reason. Online loan-providing apps will connect you to a lender and then based on your credit score, income, and credit history, the lender might make a deal for you. The interest rate for this ranges from 6% to 36% and the loan amount it offers ranges from $1,000 to $100,000. These come in very handy in attending to the additional financial needs of a person.
This is used to define the amount taken for the home loan. This type of installment loan online provides you with financial assistance when you need to pay for your house. The interest might vary but the loan term or maturity period ranges from 15 to 30 years.
As getting a house is a big investment of money, people require some or the other kind of financial help. In that case, it is the mortgages that are people’s options.
These are the type of installment loans that provide financial aid whenever you need to get money for vehicles. It is a type of secured loan as the vehicle itself is kept as security. The rates of these loans are not fixed as they vary according to the terms of the lender.
There are some more types of installment loans online other than these three main types of loans. Those loans include student loans, buy now, pay later loans, etc.
Best Providers of Installment Loans
There are a lot of providers that offer you an installment loan online but you have to make a choice. To make this task of choosing your provider easy, here are all the best providers available for your installment loan online:
SoFi offers you personal loans and some of the best facilities to make your loaning process easy and harmonious. It does not charge any fee and also is available to run through a mobile app. The loan amount provided by this installment loan online is from $5,000 to $100,000. It has its loan term set to 2 to 7 years with an APR that ranges from 7.99% to 23.43%.
If you want to get your loan from SoFi then you should at least have a minimum credit score of 680. The feature that makes it stand out from the rest is that it provides the user with financial advice, estate-related educational information, and event networking other than proving a loan.
This loan provider by Goldman Sachs is a real gem in the loan-providing market. It provides the services of financial help through providing loans along with other banking and financial help. The amount that it offers to its browsers ranges from $3,500 to $40,000. It does not specify any minimum credit score but it has an APR that ranges from 6.99% to 24.99%.
They won’t charge any fee for the process of orientation of your loan as well as no such charges as a late fee. Also, provides you with your loan in about 2 to 3 working days and allows for the help you need in times of financial emergencies.
One of the loan providers has the record to be something customers are fond of. This personal loan provider offers a loan for the amount ranging from $5,000 to $100,000. It has a loan term from 2 to 7 years with an APR ranging from 4.99% to 19.99%. It allows the user to get online installment loans instant approval after they are matched with the lender.
For getting a loan from Lightstream you need to have a minimum credit score of 660. It does charge you an additional fee and provides you with the loan amount as quickly as in one day. So, if these are all the things that fit into your requirements then you can go for LightStream for your installment loan online.
These are the best installment loans online but to not leave some of the other gems behind here are a few more :
- Best egg
- Universal Credit
Frequently Asked Questions (FAQs)
1. Can I get an installment loan with bad credit?
It’s not the ideal case to get an installment loan with bad credit. There are a few providers where you will loan out money to the borrowers regardless of their credit score. Some of those providers are listed below:
- Low Credit Finance
- Viva Payday Loans
- Green Dollar Loans
- Universal Credit
2. Which is better, a payday loan or installment loan?
Both of these loans are good on their own and to decide which one is better, you can just compare your needs to the facilities provided by them. If you are sure you can repay the loan in a short time then a payday loan should be your go. But if you want a larger amount of loan and a bit more time to repay it then you should go for an installment loan.
Everyone who looks out for something tries to find the best of it. The same thing works with getting an installment loan. There are a lot of providers that give installment loans online but there’s always an urge to get yourself the best. To ease this for you, the list of the best providers who provide installment loans online is all given in this article. This description would help you compare the best loan providers and choose one for yourself.
- Meet our Author of Our Editorial Team, Susan Anderson. She is an experienced writer and financial expert who has been writing about credit cards, card offers, services, and other related topics for more than twenty years. With her in-depth knowledge on the matter and her ability to distill complex topics into useful information for readers, Susan has become a go-to source for reliable credit card advice. In addition to her work at the editorial team, she also contributes to major publications such as The Wall Street Journal and CreditCards.com. With her expertise and industry experience, she is able to provide sound advice on all aspects of credit responsibly while helping people save money in the process.
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