Any number of life’s major milestones have been backed by installment loans from financing a car to buying your first home. By breaking loans down into numerous small installments or payments, they make large purchases possible. These payments can last for as long as 30 years or be as brief as six months. However, where installment loans are concerned, not all big purchases are a perfect fit. When it comes to debts, all cons and pros should be considered. Additionally, the cost of how an installment loan will be paid down and applied for should be factored in.
Is an installment loan right for you at this time? Here’s some information to keep in mind about installment loans.
Installment Loans – What Are They?
A form of financing, an installment loan, is paid down over a period of time in nearly equal increments. As forms of borrowing go, it’s very flexible. Paid over a short period of time, some loans are for small money amounts. On the other hand, payable over decades, some can enter into the thousands or hundreds of thousands of dollars.
Key Advantages of Installment Loans
Installment loans, compared to other lines of credit or credit cards, have two key advantages. These advantages are associated with the structure of installment loans. They have a period of time, or an established term, over which you must pay down the debt. The interest rate is also fixed, so even as the economy fluctuates, it won’t change. With these two locked items, every month, you’ll know how much you’re paying and, for the loan to be paid off, how long it will take.
Installment Loan Types
If you have a down payment, you may finance the rest with an installment loan. They are also used to finance a purchase’s total cost. As installment loans go, here are the three most common:
- Personal loans
- Auto loans
The following are required for each of these:
- With the lender, an application must be completed
- Your credit score and credit report will be reviewed
- How much you’re able to borrow and your interest rate will then be determined
Part of the purchase price will likely be required for a home mortgage as a down payment. But a down payment may not be required for some auto loans and/or personal loans.
You’ve seen some of the pros of installment loans above. Now for a few cons:
- If you have a financial emergency, lenders may not be flexible regarding payments.
- A negative mark on your credit score and/or repossession could be the result if you don’t pay.
- This type of loan may come with prepayment fees, origination fees, and/or application fees.
Looking for a Loan? Contact a Representative of Checkmate
Are you in need of a cash loan? Today it is possible to get an online loan and have the money deposited directly into your account!
At Checkmate, we specialize in providing various loan products including installment loans, title loans, registration loans, and payday loans. We understand you can’t always wait for that next paycheck. For the assistance you need, turn to Checkmate.
You can contact a customer service representative by phoning 866-722-2274. We have locations in Washington, New Mexico, Colorado, California, and Arizona. Enter your ZIP Code and use our convenient store locator to find the Checkmate location near you. Our offices are open 9 AM to 6 PM (7 PM on Friday) and closed on Sunday.