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An online installment loan allows you to repay the amount in small, structured payments over a specific period of time. Typical payback periods for these loans range between 3-24 months if the loan amount ranges between $200 - $5000. However, they carry a higher interest rate compared to conventional forms of credit. When you apply for online installment loans from Personal Money Network, credit scores usually don’t matter as people with poor credit can also get approved. All that’s required of you is that you satisfy a few basic eligibility requirements and prove that you have a reliable income source.

Installment Loans Online Vs Other Forms of Credit

Installment loans can be paid back in small parts at fixed intervals, which allows borrowers to budget their expenses properly.

Installment loans can be paid back in small parts at fixed intervals, which allows borrowers to budget their expenses properly. However, it is recommended that you repay your installment loans at the earliest since that would cap the interest amount you need to pay. It also teaches financial discipline to the borrowers since they need to balance their living expenses with their loan repayment installments. Unlike other forms of credit that require you to pay off the loan all at once, installment loans provide you with flexible repayment schedules. As long as you complete the payments regularly, there’s no reason to be worried.

Most online installment loan lenders have credit check mechanisms in place to process applications to calculate interest rates and the amount of loan that can be extended to them.

What About Other Kinds of Loans?

It wouldn’t be fair to trumpet installment loans alone as your best option if no other choices are presented to you. Let’s evaluate other options as well and see how they hold up against online installment loans.

  • Title Loans

These are technically installment loans. However, they differ from online installment loans in that they require collateral before they approve your application. Therefore, any default could cause them to seize your property, which would only add to your woes in an already dire financial condition. Imagine losing your car and house because you couldn’t pay an installment. Such actions will only further cap your ability to earn money and pay off the loan.

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  • Credit Cards

These are just loans that have ever-changing interest rates. Also, credit cards make it harder for you to see the extent of your borrowings. They can easily damage your repayment abilities and drive you deeper into debt. Many studies have also shown that people spend more when they utilize credit cards, compared to cash. Additionally, the interest charged to the card compounds as well, which can devastate your financial condition. Never rely on credit cards unless you are absolutely sure of making the payment. Not planning it out properly can wreck your finances beyond repair and cause you to fall irretrievably into debt.

  • Payday loans

These are the most popular form of credit among people looking for money. They also have quicker approval times and lower fees compared to online installment loans. However, payday loans also require you to repay the amount in full, usually on the date your salary falls into your account. As a result, you may find yourself strapped for cash right at the beginning of the month, causing them to enter a vicious circle where they are continually reliant on payday loans for cash.

Both payday loans and online installment loans are available to people who have bad or poor credit scores. Such people are usually not approved for loans by traditional credit lenders and therefore, need to rely on short-term loans of this nature. Both loans carry high rates of interest and don’t cover large loans. However, payday loans usually are limited to less than $1000 whereas online installment loans can exceed that limit easily.

Here at Personal Money Network, we ensure that our customers have access to top-quality lenders and provide them with loan details sourced from multiple lenders. We recommend these loans only after a thorough evaluation of a number of factors. We are also able to facilitate online installment loans for people with poor credit scores who are unable to be approved for loans from traditional credit sources.

In Conclusion

Regardless of what choice you take, always ensure that you’re borrowing from a reputable lender. Check the terms of the loan thoroughly and understand your obligations properly. Go through a reputed service like Personal Money Network to minimize problems. Pay the loan off as soon as you can to cap the interest amount. Most importantly, always remember that online installment loans are only meant as a temporary financial solution and should not be relied upon for long-term purposes.