What You Need To Know About Installment Loans
Posted on: 20 June 2019
When you live paycheck to paycheck, all it takes is one problem with your car, a broken appliance or a furnace going out to create a serious financial problem for your household. Not everyone has the means to put money in a savings account each pay, so when it comes time to make repairs to just about anything, the financial pinch can be paralyzing. What can you do to get the funds that you need quickly? One source of funding is through installment loan lenders. Here, you'll learn a little about installment loans and what you need to know when taking out an installment loan.
Difference between Payday Loans and Installment Loans
There is a big difference between payday loans and installment loans – the main difference being the fact that payday loans are due in full on the date you get paid next. Installment loans can be broken down into several smaller payments, so that you're not wiped out when you do get your next check.
Application Process
When applying for an installment loan, you won't have to go anywhere – you can log in online, submit your application and quickly find out if you've been approved. How quickly the approval process moves varies from company to company. Some offer instant approvals and others will take a day or two to get back to you.
Receiving the Funds
How will you receive the funds from the installment loan? That varies from lender to lender as well. Some will only offer direct deposit into the account in which the payments will be taken, while others offer options such as prepaid debit cards or pick up the funds directly at a bank. In most cases, the fastest way to get the funds is by having them directly deposited into your checking account.
Early Payoff Fees
Some installment loan companies do charge an early payoff fee. If you pay the loan off before it's scheduled to be paid in full, you'll pay a fee – how much of a fee varies from lender to lender. Other companies do not penalize you for paying off the loan early.
Customer Service
You never know when you'll need to talk with someone at the lending company. Before you take out the loan, take a minute to call or chat online with a customer service representative. This will give you a good idea of how the installment loan lenders, at that particular company, treat their customers.
The installment loan can help you get the things done that you just can't afford to pay for out of your paycheck. Hopefully, the information above helps you make the best possible choice for your personal situation.
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