If you are looking for a way to get cash fast, then an installment loan might be for you. These types of loans are becoming increasingly popular across the globe as shown in this research paper by George Washington School of Business professor J. Howard Beales, III.
Financial institutions like MaxLend offer these loans with no collateral required.
So is an installment loan right for you? Continue reading this MaxLend review to learn more!
What Is an Installment Loan?
An installment loan is a loan where you borrow a certain amount of money all at one time. After receiving the loan, you pay back the loan over a fixed number of payments or installments.
In this MaxLend review, you’ll see that your payments are in fixed amounts. So unlike other bad credit loans, the amount you pay doesn’t change over the lifetime of the loan.
Benefits of MaxLend Installment Loans
The biggest benefit of a MaxLend installment loan is that you will have a predictable payment plan that would be easier to schedule and budget for than other loan types. This makes them different from payday loans.
There is great comfort in knowing by what day your debt will be paid off. And if you take out a loan with the shortest payment term that you can afford, you can get out of debt faster.
MaxLend’s installment loans are fixed to last only 6 months, so you can easily see the light at the end of the tunnel.
Also, MaxLend’s installment loans are collateral-free, making it easy to take out a no credit check loan. And they do not charge an origination fee. So when you take out the loan, you will not have to pay for underwriting, processing, and funding the loan. Many other lenders will make you pay these costs.
Also, people with troubled legal histories may have more luck with installment loans from private lenders as opposed to traditional banks.
Downsides of Installment Loans
One of the main drawbacks to installment loans is that once you take out the guaranteed loan, you can’t add to it. This is different than with something like adding a line of credit. Instead, to add money, you will have to take out another loan.
Also, your interest rate, as well as other loan terms, are largely based on your credit score. Having a low credit score could mean a higher interest rate.
Additionally, MaxLend is a tribal lender, meaning that they are not subject to state laws. This can be seen as a way to avoid protections that states are trying to put in place to restrict high cost loans, according to the National Consumer Law Center. This is definitely a situation where you should ensure you read all the terms and conditions before signing on the bottom line.
Examples of Installment Loans
One example of a loan that is paid in monthly installments is an auto loan. Typically, a loan paid over a longer period of time will have lower monthly payments than one paid over a shorter amount of time.
A mortgage is another example of an installment loan. With a mortgage, you are loaned money so that you can afford to buy a house.
Final Thoughts on MaxLend Review
Based on this MaxLend review, we can see that there are many instances where it would be advantageous to take out an installment loan. Whenever you take out a loan, just be sure that you will be able to pay it off based on the agreed-upon timeframe and installment amounts.
Want to learn how to get a loan with no job and a welfare check? Check out this article for more! Here are some other articles from our blog you might find helpful: