Thursday, July 15, 2019 / 1:30 p.m. / Content by Sarah Williams / Header image credit: The Tech Mesh
With the advent of the Internet age, the financial industry has undergone many changes. Easy access to financial assistance, such as loans, has become easier than ever. Additionally, with the competitive nature of many online entrants to the market, banks and other microcredit institutions are making peace with the reality that they need to come up with more creative products to keep the market happy.
Online lenders have managed to do this quite well with the varied products that seem to pay attention to the immediate needs of the common man. One of these products is the installment loan. It is common knowledge that unforeseen expenses are difficult to cope with, especially considering the usual monthly bills. In such cases, short-term solutions become necessary to help salvage the situation. This is where online installment loans come in.
Installment loans from direct lenders become really essential when looking to take out a loan that has a long repayment plan. Let’s try to figure out what these loans actually look like.
What is an installment loan?
Two things define a installment loan, and these are its ability to access them quickly and the long durations you can have to pay them back. A more refined definition for a loan that can be repaid on multiple payment schedules, with due dates falling on the borrowers’ payment dates. Direct lenders are among the most trusted and popular options when it comes to accessing these loans.
Although installment loans are generally characterized by the possibility of having long-term repayment options, there are also short-term installment loans. These loans can be repaid in months or even years. These loans are mainly used to cover expenses such as medical expenses, as well as maintenance of the house, among others,
As for long-term installment loans, they are common with mortgages and are mostly repaid over terms of 20 to 30 years, as the repayment terms dictate. Unlike many short-term loans, the
long term ones are secured by a pledge.
To better understand installment loans, we could contrast them with payday loans. While they all help you quickly access the money you need, they differ in their repayment terms. For a payday loan, it must be fully repaid on the next pay date. Whereas for an installment loan, the amount to be repaid is divided and repaid on subsequent scheduled payment dates, allowing only a small portion of the amount due to be repaid during a given series of dates.
Get installment loans from direct lenders
To obtain installment loans from direct lenders is the most reliable option. No wonder it is popular among the many options. Direct lenders are simply loan providers who connect directly with the borrower to issue the loans. This means that the borrower does not need to go through a broker for such a service.
Knowing who to contact can be a daunting task if you are doing this for the first time. However, with the information available on the internet, it is possible to engage it and use your best judgment to arrive at a suitable option. For example, reviews are a good place to start. As in all industries, there are direct lenders that will appear in different lists as being among the top providers of these services. It is wise to go further and browse the reviews that have been given regarding these services.
It is important to ensure that they are licensed by the state to make direct installment loan loans. Although some lenders may have licenses for certain states, they may not necessarily have the license for the state you are in, so make sure you can get proof before proceeding.
Go ahead and even call them to make sure their terms work for you. More often than not, with the right amount of due diligence, you should be able to arrive at the right provider without risking falling into the hands of the wrong options. If you’re not sure where to stay, MoneyKey is a good option to consider, given that they’re licensed in many states.
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