Where To Go Online To Secure A Monthly Installment Loan
Unfortunately, lump sums of money don’t grow on trees. But fortunately for you, monthly installment loans can help you branch out and make major purchases, like buying a home or car.
With an installment loan, you receive a lump sum of money upfront, then pay it back to the lender in monthly payments over the life of the loan. Payments will be structured so that the loan is totally repaid by the end of the agreed-upon term.
Online installment loan options abound, whether you’re looking for an auto loan, a mortgage, or another type of loan. You can find comprehensive information about lenders, the various loan options available, terms, and interest rates.
Websites such as Fiona focus on personal loans, which you can use for home improvements or just but anything. The site allows you to compare rates from multiple lenders, with no hidden fees.
Coming To Terms With An Installment Loan
Before you take out an installment loan, it helps to know what exactly the lender is talking about. A few terms to be familiar with before you sign on the dotted line:
Principal: The amount of money you borrowed.
Interest: The amount the lender will charge you for the loan.
APR (Annual Percentage Rate): Refers to the yearly interest rate rolled up with fees associated with taking out the loan.
Term: The number of months/years you have to repay the loan.
Monthly Installment Loans Have Their Benefits
If you’ve never taken out a monthly installment loan, you might be wondering what gives in terms of why they’re so popular. Here’s a look at some of the benefits that might make this type of loan a good choice for you, now or in the future.
You can apply online for an installment loan and receive an offer from a lender within minutes. Once everything is completed and accepted, you could see the funds in your account within a day.
Most online installment loans come with reasonable interest rates that allow for manageable monthly payments. In addition, many installment loans are unsecured, resulting in less risk for you as the borrower. A secured loan, which might carry a better interest rate, requires you to put up collateral such as the car you bought. If you fail to pay back the loan, the lender can opt to take the collateral.
For most installment loans, the interest you pay will be “fixed” or “simple,” meaning that the interest rate won’t change during the life of the loan. You can count on your payments being the same, month after month, and you’ll know exactly when the debt will be paid in full.
Be Aware Of The Pitfalls
There are some online lenders, just like some brick-and-mortar institutions, that offer questionable practices. It pays to conduct due diligence and avoid any of the following before you sign on the dotted line.
Responding To Unsolicited Loans
Legitimate lenders don’t send unsolicited texts or make cold calls regarding loan opportunities; they advertise their services through standard channels such as website banners, commercials, and billboards. File unsolicited offers under the category ‘If it seems to good to be true, then it probably is.’
Getting Pressured Into A Deal
The lender offers you a great deal, but with the caveat that unless you sign right then and there, the offer will be rescinded and you’ll lose out. High-pressure tactics could signal that the lender is trying to rush the deal through because they’re hiding something.
Taking Out A Payday Loan
Payday loans are not the economic windfall that the name implies; in fact, this type of loan can wreak havoc on your finances. These small, super-fast loans come at a price in the form of extortionate interest rates that can run as high as 300%, 400%, or even 500% APR.
Getting A Loan From A Lax Lender
If a lender doesn’t ask for your complete personal information and doesn’t run your credit score before offering you a loan, they might not be legitimate. When a lender doesn’t conduct thorough checks, be wary of accepting money from them.
Overlooking The Signs That Something’s Not Right
Legitimately offering a loan and lending money requires knowledge, professionalism, and commitment on behalf of the lender. If you’re working with a lender who seems to be operating in a slipshod manner, you might want to slip in a “thanks, but no thanks” and seek out other financial offers. Red flags to look for include email contacts via @gmail.com, @hotmail.com, or @outlook.com; unsecured websites; or spelling or grammatical errors on an offer letter. If you get the feeling that something isn’t right, look elsewhere for your financial needs.