Short term installment loans are not as well known or as well understood as payday loans. That is because short term installment loans have not been recognized by the consumers or have been overshadowed by all the talk around payday loans. While both avoid the option of borrowing from traditional lenders such as big banks and financial institutions, installment loans may also have additional pluses to a payday loan or a bank loan.
Differences
The biggest difference between a short term payday loan and a short term installment loan is that payday loans typically are paid in full within thirty days or less. Short term installment loans can be paid out over several months or even a few years, depending on the terms of the loan.
The total amount of the loans will also vary. Obviously a loan that is to be paid out in just a single month is going to be limited to what your income will allow you to repay. Short term installment loans may include a larger amount that is paid out in installments, more like a traditional bank loan
Benefits
The major benefit to short term installment loans is that you can borrow several hundreds or thousands of dollars without the need to pay it back immediately. This means that you can effectively plan your repayment of both the principal as well as the interest. While these can be more than a traditional bank loan you also don?t have to worry about your credit score being considered in your loan application.
Fees
Depending on the terms of your short term installment loans you will be required to repay the principal, the amount you borrowed, as well as set fees and interest. This will all be provided in advance of you accepting or approving the loan. There are varieties of APR or annual percentage rates on many loans, so shop around and compare.
Choosing the best short term installment loans is an important consideration. You need to fully understand the repayment schedule as well as the costs of obtaining the loans. These loans can be a great option for people with low or no credit as well as those that don?t want to deal with a traditional bank or financial institute. We can connect you with lenders for short term installment loans.
