Bonsai Finance: Learn More About Installment Loans for Bad Credit, Poor Credit or Without Credit History
When it comes to installment loans, they include a set number of payments done over time, which include auto loans and mortgages. For instance, Jane wants to borrow money worth $1,000 for an emergency medical expense. Jane took advantage of an installment loan that needs to be paid within 24 months with an interest rate of 25%. In an installment loan, Jane can get a check worth $1,000 and pay regular monthly payment of $53.37 for a period of 24 months. What is the difference between a payday loan and an installment loan? Generally, payday loans are short-term, with higher interest rate, and are usually paid back as a single lump sum payment on the borrower’s next pay period. In contrast, an installment loan usually last for many months and there is an even spread out of payments over the term of the loan.
Installment loans is the best option for people without a credit history, for those who have bad credit or poor credit, in order to help to build a good credit history. The reason for this is that installment loans are requiring multiple payments over time, helping create a good history of repayment. Installment loans can help Jane establish a good credit history for better business transactions. An installment loan is a good solution for those needing extra funds that beyond cash advance can offer. Installment loans are more flexible than other types of loans because the borrower can decide the amount to be borrowed and the length of time it can be paid back. A borrower can decide on smaller payments for a longer payback period or a shorter loan term with larger payments. Today, installment loans are not yet available in all states and there are some states that dictate the minimum and maximum loan amounts that a borrower can obtain an installment loan.
Installment loans involve applicable fees and interest charges, and if the borrower is unable to make on-time payments, then any late fee must be notified to the borrower before application and collection. As required by the U.S. law, the lender should express all charges clearly in dollar amount including the annual percentage rate (APR). Indeed, installment loans can help people with a poor or bad credit history, including those without credit history, so come and talk to us now and we will help you. We wills hed light to the facts and benefits of installment loans.