You are often able to borrow a larger amount than a payday loan, and the repayments are more affordable. These advantages, along with several others, are explained in more details below.
Larger borrowing options
If you have a large purchase that you want to make, then an installment loan usually allows you to borrow a larger sum of money. This can be useful if you want the loan for something such as a car or a once in a lifetime vacation.
Regular monthly payments
The repayment of an installment is unlikely to change through the term of the loan. This makes it much easier to budget for these repayments as you will always know how much you have to pay each month.
Longer repayment term
A longer repayment term is useful because you do not have to worry about finding the money to pay back the loan straight away. This is also the reason that the monthly repayments are lower as the loan is spread over a longer term.
The fact that the loan repayments are lower is one of the main reasons why installment loans are such a good alternative to payday loans.
Easy application process
There are two main ways to apply for an installment loan – either online or in person. Whichever method you choose, you will find that the process is very straightforward. There will probably be an application form that you need to fill in, and you may need to provide some documentations. Most companies will be able to provide you with an instant decision.
Money the same day
Many loan companies will be able to pay you the money the same day that the loan is approved. In most cases, the money will be transferred to your bank account for you to use as you wish. This can be very useful when you need the money quickly as there will be no waiting around for the money to clear.
Options for all credit ratings
Even if you have a less than perfect credit history, you should still be able to apply for an installment loan. Many companies have loans that are suitable for all circumstances. If you have had money problems in the past, then you may still be able to be approved for a loan if you can prove that you can afford the repayments.
In order to apply for an installment loan, you will need to prove your identity and your address. You are also likely to have to prove your income so it can be helpful if you have documentations to hand such as payslips that show how much you earn. The company that you are applying to will be able to tell you exactly what documentation you need.
Installment loans are a really easy way to get the money that you need quickly, and the cost of repayment is spread out over a number of months, so repayment is affordable. If you apply for a loan today, you may be surprised at how quickly you will have the money.