Advantages of an Installment Loan

An installment loan is a borrowed amount of money that must be paid back over a contracted period of time in regular, usually monthly, payments. Although there are alternatives to installment loans, such as payday loans, the advantages of installment loans make them appealing to many people. 

Reliable Interest Rates Mean Predictable Monthly Payments

Installment loans have fixed interest rates for the life of the loan. Fixed interest rates are appealing because a borrower does not need to worry about an increasing interest rate resulting in a substantially greater monthly payment.  Borrowers know what to expect each pay period.

Longer Terms Mean Lower Monthly Payments

Installment loans generally fall in the long term range. A longer amortization, such as 15 years, means that each month’s payments will be low and easy to make.

Speed Gets Borrower’s Money Fast

It will not take more than two weeks to get money from an installment loan. A borrower can receive money in as fast as two days after the filing of an application. Requirements for an installment loan are relatively loose and lenders do not demand a lot of documentation. As a result, processing time is quick. Borrowers receive a lump sum of cash immediately following closing.          

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