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How do installment loans work
18 Mar 2018

How do installment loans work?

Perhaps, you are in a “financial pickle” and are considering payday loans but not with much enthusiasm. If so, you’ll be glad to hear there are other viable options to get you through a financial emergency then taking out a payday loan.

Installment loans online offer many features that make them superior to the payday option, depending on your exact situation and preferences.

Read on to learn how taking out installment loans online can benefit you as compared to your other options.

What Are “Installment Loans?”

Installment loans are a form of short-term loans that let you repay in regular monthly installments instead of all at once as with payday loans. You can take out anywhere from around $500 to $5,000 and repay over a period as short as a few months or as long as a few years.

Installment loans are also sometimes called “personal loans” because they require no collateral. The de facto collateral for the loan is simply the person’s ability to repay. Thus, you have to provide basic evidence of your average monthly income to get an installment loan.

The interest rates for installment loans and the associated fees are usually much lower than for payday loans as well.

In certain situations where you only need to borrow a very small amount and plan to pay it back in full next paycheck, payday loans could be a good option. But anytime you need to borrow more for longer, personal installment loans are clearly superior.

How Easy Is It to Get an Online Installment Loan?

One of the best things about installment loans is that you can conveniently apply for them online in just a few minutes’ time. And approval is instantaneous in most instances.

Furthermore, very few people fail to qualify for these types of loans. Bad credit need not be a problem either. Your credit score isn’t going to prevent approval because approval is based on ability to repay not on credit history.

And most lenders won’t even run a credit check, which saves you time and protects your credit score from further damage.

Only the most basic personal and financial information is asked for on a short application form, and all personal data is kept fully secure.

How to Find the Best Installment Loans Online

Finding installment loans online is as easy as a Google search, but finding the best such loan is another matter – unless you have help from an experienced loan-matching service like Bonsai Finance.

At Bonsai Finance, we make it our business to connect you with the most reputable and reasonable lenders. We search through hundreds of options based on your very specific criteria to find the loan and lender that best fits your needs.

Comparing hundreds of companies in regard to all their detailed loan terms and policies would be a next-to-impossible task on your own. But at Bonsai, we make if quick and easy!