With the consumer credit marketplace saturated with so many lending options, it's hard to decide what the best solution is when you need cash. Installment loans are one of the most popular options for meeting urgent financial needs. Here's a look at several reasons why you should consider an installment loan if you're in need of cash for an unexpected expense.
Clear Interest Rate
Most installment loans have a clearly defined, fixed interest rate. That means you'll know exactly what you're paying in interest over the life of the loan. If your budget doesn't allow for the variation in payments that can come from a flexible rate affected by the current market, an installment loan's fixed interest may be the better solution. You can establish a consistent, reliable budget this way so you have a better chance of making those payments on time.
Unlike payday loans that typically require payment in full on your next payday, installment loans come with an extended repayment period. With most lenders, you can choose anywhere from a few months to even a couple of years for your repayment. Talk with your lender about the repayment options available so that you can find one that works for your situation.
For borrowers who struggle with their credit history, installment loans are a great way to rebuild credit history and show consistent payments. Most installment loan lenders will report to the credit bureaus on a regular basis, so you can build a history of timely payments and even show a cleared balance when you pay the loan off. Work with a lender who offers loan options for those with less-than-perfect credit and you'll come out of the loan with a positive record that will reflect well to any future lenders.
Flexible Loan Amount
Installment loans are any loan designed to be repaid over time. Since that includes both secured and unsecured loans, you'll have a lot more options for the amount that you can borrow. If you need a significant loan, look for a secured loan choice and use something of value for collateral. This may even increase your chances of approval for the loan, because you'll be offering something to guarantee your payments.
As you can see, there are many benefits to working with an installment lender for the money that you need. Reach out to a local lender today to see what options may be available based on your financial situation.