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The Positives of Getting an Installment Loan

If you’re anything like the rest of the world, you’ll find the word “loan” initially terrifying – particularly if you haven’t taken one out before. Like with the vast majority of financial and technological things, the notion of taking out a loan tends to get a lot of bad press – and the vast majority of the time, it’s undeserved bad press at that. The fact of the matter is, as long as you’re choosing the right sort of loan for you and only lending what you can pay back, taking out a loan can be harmless. You’ll have heard of short term loans, and payday loans – but today we’re going to be exploring installment loans, and the positive qualities that they possess.

What do I need to Know Before Applying for an Installment Loan?

If you’re interested in taking out an installment loan, before applying for an installment loan from Personal Money Network, it’s important to know a few things.

The easiest way to apply for an installment loan, and just about any loan nowadays, is through an online company. Whereas once upon a time you’d have to go into a specialist shop and apply for a loan, with the development of technology and the way it’s used by businesses nowadays it’s simple enough to do from the comfort of your sofa. This is the reason why taking out online loans has become so popular amongst the general public.

One thing to be extremely mindful of, as with doing any sort of financial transaction on the internet, is the legitimacy of the company you’re using. Unfortunately the internet is filled with scammers and untrustworthy folk, who will pose as a reliable loans company in order to steal from you. The problem with the advancement of technology, is that scammers are also advancing. They’re becoming better at disguising themselves as legitimate companies in order to commit fraud, so it’s important to be vigilant at all times.

One of the best ways of avoiding things like this happening to you, is by doing your research. A lot of the time if you look into things online, you’ll soon be able to see whether or not these companies are trustworthy. Check their credentials, and their reviews, and you should be fine.

Speaking of credentials, of course there are some credentials you too will have to have in order to be accepted for an installment loan. Now, these do tend to vary from lender to lender, but here are a few of the generic criteria you’re likely to have to meet:

  1. A lot of the time, for an installment loan, you actually have to be aged twenty five or over.
  2. You’ll need proof of regular income. For some companies, you’ll have to earn over a particular amount in order to be accepted, so they know you’re able to pay it off.
  3. You’ll have to provide the lender you go with, with your bank account details. A lot of the time, these companies will transfer the money directly into your account.
  4. You’ll also need a proof of employment. This could be proven by showing your lender a pay cheque, or even your employer signing a recognition of your employment.

Unlike many loans that require credit scores and proof of assets, installment loans are fairly easy to come by.

The Positives

Okay, so we’ve talked enough about what it’s good to know before applying for an installment loan. It’s now time to get into taking a look at why they can be useful, and what makes them popular.

First off, installment loans are profitable. You borrow a sum of money all in one go, and yet are able to pay the money back on a monthly basis instead of upfront. You can even prolong your payment if you’re struggling, or to suit your income if it varies throughout the year.

It’s entirely up to you how quickly you pay it off. Some months you could pay off a bigger sum, and other months you could pay off a smaller sum. The good thing is, it’s all dependant on you, how much you earn month to month, and fitting it in around your other finances. It’s important to pay it off consistently and not miss payments, however. You also have to confer with your lender about this, and come to an agreement.

Finally, you could pay it off in three months, or stretch it over twelve. One of the reasons installment loans are so popular is because of their flexibility, and how easy they are to apply for.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

By Sheena Jordan
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