Strapped for cash? Don’t worry, you’re not alone. Millions of Americans take out personal loans every year.
Maybe you’ve got some past credit issues or need money fast. Personal installment loans are a great product for this situation. You can get them online with little paperwork.
But what are the online loan options and how do you apply?
That’s where we’re here to support you. We offer help to improve your financial situation. And sometimes that means taking out a small personal loan to get you through to the next paycheck.
Here’s everything you need to know about personal installment loans and how to get one online with Jora Credit.
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Installment vs Revolving
What is an installment loan? There are two primary types of loans: revolving and installment. Let’s take a look at both.
An installment loan is any loan that requires you to pay back the debt in regular payments. This includes mortgages, auto loans, boat loans, student loans, and unsecured personal loans.
A revolving loan is one that doesn’t call for fixed payments. Revolving loans have a credit limit and require that you make interest payments monthly. When you pay the loan down, you can use that credit again as much as you want.
Examples of revolving loans would be credit cards, home equity lines of credit, and overdraft protection lines.
An installment loan allows you to pay off the loan in a certain amount of time. It’s the best type of loan if you need cash now yet want to pay down your debt quickly.
Secured vs Unsecured
The two types of installment loans are secured and unsecured. Secured loans are backed by a piece of collateral. For example, a home, car, or boat.
Unsecured installment loans have no collateral. Meaning the lender has no way to recoup their money if you don’t make your payments. Examples of unsecured installment loans include student loans and unsecured personal loans.
For all installment loans, your lender creates a repayment schedule based on an interest rate and a timeframe. You make a principal and interest payment on a regular basis (usually monthly) until the end of the loan term.
Pros and Cons of Unsecured Loans
A secured bad credit loan usually has a better interest rate than an unsecured loan. That’s because the lender takes less risk with a secured loan. Often, secured loans are no credit check personal loans, as the lender isn’t looking at your credit score, but is instead looking at the value of the item securing the loan.
Cars that are less than 5 years old can secure a loan for up to seven years. Unsecured loans usually have a shorter term. With Jora Credit, unsecured loans are repaid in 30 months or less.
Unsecured loans offer less money than secured loans. With a secured loan, the amount of money depends on the value of the collateral. With an unsecured loan, it depends on your income and personal credit.
One drawback of a secured loan is that you don’t own your collateral free and clear anymore. If you put your car up to secure the loan, then you’ll need to get the lien released before you can sell your car.
Also, secured loans have more paperwork because the lender must record their security. Auto loans and camper loans require you to supply the lender with the title.
And non-titled equipment, such as snowmobiles or ATVs, means the lender to files a UCC with the state. These filings cost you more money.
Unsecured loans have very little paperwork and don’t have recording fees.
The biggest positive to getting an unsecured loan is speed. A lender checks your personal credit and verifies your income. There are no other hurdles to jump.
When you need cash fast, this is the best option. Many lenders can have your cash to you within the same 24 hours.
And if your credit is not great, a small installment loan through a secondary lender might be the best option for you. Many lenders give bad credit installment loans and it allows customers to build up their credit for the future.
Personal Installment Loans With Jora Credit
Now that we’ve covered the basics of installment loans, let’s look at loans available through Jora Credit.
Jora offers unsecured loans only. But because they don’t need collateral, their loans are fast. You can have your cash within a day of applying, so these are good alternatives to online payday loans, which will have much higher interest rates.
They offer loans between $500 and $2,600, which is perfect for a bad credit loan to support that unexpected expense that just popped up. Plus, you can term out your loan up to 30 months. That means you’ll have 30 months to repay it.
And they give you the option of paying bi-weekly or monthly. Which gives you some flexibility in how you set up your repayment schedule.
The application process is easy. You create a free profile on the Jora Credit website. Enter your personal information and your income information. You must be over the age of 18 and have a verifiable income source.
Once you’ve created your profile, it takes just a few minutes to process. They’ll let you know how much money you’re approved for. They’ll also give you options for borrowing terms.
There are a few other requirements to get a Jora loan. You must live in one of the states they serve. You must also have an active email address and a bank account.
But if you’ve had some credit issues in the past, Jora is the place to go. They specialize in loans to people who need cash fast and have poor credit.
Is an Installment Loan Right for You?
Personal installment loans offer a more structured repayment schedule than revolving loans. You can get installment loans secured or unsecured. And they help build up your credit.
There are pros and cons to both, but if you’re looking for fast cash, an unsecured installment loan with Jora Credit might be your best bet.
At Bonsai Finance, we regularly review small lenders like Jora. Check out our Learning Center for more articles about managing your personal finances.