And Installment Loan May Be For You
This is common to most of the people, but they are to bear the scorching of the horrible rise in the market price
. Installment loans are like payday loans which are paid against paycheck of the next month.One advantage of installment loans is that the people who have very stained credit record are also eligible for this kind of loans. It is a fact in the financial market that the lenders do not advance any kind of finance to the people who are attached with arrears, defaults,bankruptcies, foreclosures etc although they are in genuine need of financial support.
It is good for them that credit record is not checked in installment loans. Installment loans are like short loans. The amounts available to borrow are different from lender to lender so be sure to inquire.
The lender decides the amount that he will pay after studying financial capacity of the applicant. Installment loans are, again, like short term loans. The repayment period is in the range from 14 to 30 days.
The loan-seeker can approach the lender for extension in the reimbursement tenure. This is not advised generally. Sometimes, the lender grants such extension, but the borrower is to shoulder some fines or penalties.
It is always good to clear the installment loans within the given time as its interest rates are relatively high. The borrower is also advised not to go for finance before the repayment of the installment loans.
The borrower should fulfill some conditions to be eligible for installment loans. It is necessary that he must be a citizen of Untied States and that he is over 18. He must have checking account.
It is also required that he must be employed in any legally authorized organization at least for half of a year and that his monthly income is around $1000.
Installment loans have some similarity with unsecured form of loans. Unsecured loans, are the loans that generated without any documents or identifications and are granted based on the borrower's credit standings.
On the other hand and in order to get secured loans you have to offer some kind of collateral against the borrowed sum. In most cases the lender will finance for your offered asset (collateral). You can also ask for more money against the asset from the lender.
In this type you get low interest rate compared to the unsecured one. With fixed rate loans the charging of interest rate is fixed. The only disadvantage in this type of loans that if the interest rates fall, then you lose in terms of costs.
With installment loans you will get bulk amount of money and you have to pay the installments through periodic payments. If you need money in future you have to open a new installment loan account, which is either unsecured or secured.
The most common installment loans are mortgages, personal loans and student loans. Installment accounts are very competitive in interest rates than the revolving accounts. You can also build up your credit score by using installment accounts.
If you are trying to take a home loan or an auto then it is a great choice to establish your credit. The main benefit to the installment loan is that the loan is available for repayment over a longer period of time rather than on your next payday as with a payday loan.
These loans help to ease the stress of some bills that are typically not thought about as they allow the individual to pay back the loan in installment payments and over a period of time. Another great benefit is that there is no credit check so even those who have bad credit typically quality for this type of loan which can be a great help to them.
What might you use installment loans for? Installment loans are typically thought of as loans that are available to help you deal with an emergency situation.
by: Jack Landry